Performance valuation of a company is important not just for financial analysts and investors, but also for everyone somehow engaged in business life. In this dissertation we analyze a comprehensive framework that includes full-detailed financial statement analysis, Free Cash Flow to Firm (FCFF) valuation and relative valuation of a company’s equity by introducing a three-factor multiples model which combines information provided by regressing three different ratios PEG, Price to Book (P/B) and Price to Sales (P/S) against the expected growth rate of each company in the next 5 years into a single valuation equation. Besides that, we investigate how overvalued or undervalued are the 100 prominent U.S. companies of a computer-based technology group (a subgroup of technology industry) that includes four main sectors namely: the computer software, the computer peripherals, the IT services and the semiconductor industries. Althouth the simplest relative valuation is to use an equally-weighted average over the respective individual ratios we also provide estimations about each individual multiple, so as the analyst to be left to combine them into one valuation.
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