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Project Instructions

The project involves evaluating the value creation of Moroccan listed firms in various sectors by analyzing financial data from 2019 to 2024. Teams will assess their assigned company's financial performance, understand its sector, and estimate value creation using economic and market value indicators. Finally, teams must propose strategic financial decisions to enhance their company's growth and value creation.

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3 views3 pages

Project Instructions

The project involves evaluating the value creation of Moroccan listed firms in various sectors by analyzing financial data from 2019 to 2024. Teams will assess their assigned company's financial performance, understand its sector, and estimate value creation using economic and market value indicators. Finally, teams must propose strategic financial decisions to enhance their company's growth and value creation.

Uploaded by

zinebjoulid123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Project Instructions: Chapter I:

Evaluating Value Creation of Moroccan Listed Firms

Objective

In this project, you will act as financial managers responsible for assessing the value
creation of a company operating in one of the following sectors:

Agrifood, Automobile, Construction, Energy, Financials, Mining, Tech-IT, Tourism,


Transport.

Each team, composed of five students, will be assigned one company within these
sectors. You will work with semi-annual financial data from 2019 to 2024 of
Moroccan firms listed on the Casablanca Stock Exchange, including:

 Balance Sheets

 Income Statements

 Cash Flow Statements

 Key Profitability/Risk metrics

 Ownership Structure

Your mission is to analyze your company’s financial performance, evaluate its value
creation, and propose strategic financial decisions to enhance its growth.

Step 1: Understanding the Company and Its Sector

Before diving into financial analysis, you must thoroughly understand:

 The company’s activities: What products or services does it offer? Who are its
competitors?

 The sector’s characteristics: What is the growth rate of the sector? What are its
main challenges and opportunities?

 Macroeconomic factors: How do global and local economic conditions impact


the sector?

 Ownership Structure: Who are the major shareholders? What is the ownership
geography?

Step 2: Estimating Value Creation

You will evaluate your company’s value creation using two main approaches:

1. Economic Indicators: Economic Value Added (EVA) and Its Decomposition

 Decompose EVA into its components to analyze its drivers

2. Market Value Indicators

 Market Added Value (MAV): How much value has the company created for its
shareholders?

 Market-to-Book Ratio (M/B): Compare the company’s market value to its book
value

 M/B Decomposition: Break down the ratio to understand what factors


contribute to the firm’s market valuation

The calculations should be performed following the methodology covered in the


theoretical course!

Step 3: Strategic Decision-Making

As financial managers, your final task is to discuss within your teams and propose
strategic solutions to enhance your company’s value creation. Consider:

 How to increase EVA (e.g., cost optimization, revenue growth, better capital
allocation)

 How to improve market value indicators (e.g., dividend policy, investor


relations, innovation strategies)

 How to adapt financial strategies based on sector-specific risks and


opportunities

Your final output should include:

A presentation discussing your key findings and proposed strategies.

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