Synopsis:

Amira Lee has been newly appointed as a financial analyst for Melati Investors Berhad. She needs to decide urgently whether to buy Nestlè’s equity or not, as the top managements require her to provide a report which support the recommended decision for Melati Investors Berhad. For Amira Lee, it is not an easy task for a financial analyst to value the equity of Nestlè Malaysia Berhad by solely using the reported profits and losses, earnings per share and total assets and liabilites obtained from the financial statements. Hence, her consideration whether to buy Nestlè Malaysia Berhad’s equity or not, was not quite straightforward because she might have to look at more than one year financial statements to value the equity by applying valuation models.