Value investing: analysis of listed companies

Abstract

The main purpose of this graduate work is the adequate selection of investment opportunities with a long-term vision considering the analysis of the financial information offered in the annual accounts and other analytical tools of great recognition. After describing these ratios, information will be compiled on a specific company, on which an exhaustive analysis will be carried out on its current situation and future potential, in order to know if it is suitable for the purchase of shares of the same.

Firstly, through the analysis of the financial statements, a correct interpretation of the company's financial situation will be made, using a large number of financial ratios, which are used by most analysts, gathered according to different approaches, such as solvency or liquidity, with the purpose of creating a predetermined financial analysis format that allows automating the process of selecting potentially profitable securities with which design long-term investment strategies in the securities market.

Next up, a series of stock market ratios where the quotation price is involved will be detailed. These are the ratios that the analyst uses to detect investment opportunities considering the behaviour of the companies in the stock market.

Finally, the financial and stock market ratios previously analysed will be implemented on the basis of Louis Vuitton's annual accounts and historical share price, evaluating the 2016 year-end results together with those of the four years prior to this one, and then comparing them with the results obtained at the end of 2017 and 2018, as well as the current share price, with the final aim of corroborating whether the purchase decisions previously estimated at the end of 2016 are based on a good foundation.