Business Analyzer Worksheet

Name of Business: ________Samsung (SSNLF)______________________________

1. Does the company have an identifiable durable competitive advantage?
If yes, describe it in as simple a manner as you can.

1. Pass / Fail

Yes, other than Apple, Samsung is one of the most popular electronic brands out there. This gives them an
identifiable competitive advantage against all other electronic companies.

2. Do you understand how the business product/service works?

If yes, describe how the product/service works.

2. Pass / Fail

Samsung sells various electronics, such as tvs, computers, laptops, phones, refrigerators, washing
machines, watches, and more. Samsung is one of the most popular brands to choose from, and the name
of Samsung is a good name, so people are more likely to buy from them because their name brand is
known to most people.

3. Will the businesss product/service be obsolete in 20 years?

If no, explain why the product/service will not be obsolete in 20 years.

3. Pass / Fail

No, because even though technology changes, people will still need some of their products such as
refrigerators and washing machines.

4. What is the companys per share earning history and growth rate?
(Finding Information on morningstar.com)
EPS (Earnings Per Share) --- Type Ticker Symbol in Get QuoteKey Ratios
Year
EPS

200
5
491
28

2006
521
20

200
7
489
24

200
8
373
40

2009
64585.
99

2010
105672.
01

Has companys EPS consistently gone up each year? _no_____

If not, was the weakness a one-time event? __no____
5. Is the company consistently earning a high return on equity?
(Finding Information on morningstar.com)
ROE for past ten years ---Key Ratios

2011
889
90

2012
1539
50

2013
1978
00

2014
1530
96

4. Pass / Fail

Business Analyzer Worksheet

Year
Return on
Equity

2005
19.3
6

2006
18.7
6

2007
15.3
9

2008

2009
15.0
10.11 5

2010
20.4
3

2011
15.0
3

2012
18.7
8

2013
19.8
2

2014
13.09

5 -Year Average Return on Equity __17.43______Higher than 15%? _yes______ 5. Pass / Fail
6. Does the company have a lot of debt?
6. Pass / Fail
Long-term debt in the current year of the business / Total net earnings in the current year of the business
__1,379,871,000,000___

_23,082,499,000,000____ = ___.059_________

Long term debt should not be more than five times current net earnings
(Finding Information on morningstar.com)
Long Term Debt ---Financials - Balance Sheet --- (Click Annual tab at top; Look at current
year)
Total Net Income ---Financials - Income Statement (Click Annual tab at top; Look at
current year)
7. Is the company free to raise prices with inflation?

7. Pass / Fail

If the price of the product has risen on an average of at least 4% a year over the last twenty years, then
you can bet the farm that its the kind of business that can raise prices along with inflation.
8. Are large capital expenditures required to update plant and equipment?
(Does the product/service require expensive changes or upgrades?)

8. Pass / Fail

Price Analysis
9. Is the companys stock price suffering from a market panic, a business recession, or an individual
calamity that is curable?
9. Pass / Fail
10. Use this formula to determine if the business is undervalued, fair valued, or overvalued.
P/E Ratio (Price / Earnings) / 5-Year Annual Avg. of Net Income =
____9.1______

___8.9_______

___1.022_______

0 1 = Company is undervalued
10. Undervalued/Fair value/Overvalued
1 2 = Company is fair valued
2 3 = Company if overvalued
(Finding Information on money.msn.com/)
P/E Ratio --- Valuation Price/Earnings (1st Column)
Net Income 5 Year Average ---Valuation Price/Earnings (4th Column)

Business Scorecard:
#1

#2

#3

#4

#5

Competitiv
e
Advantage

Understan
d
Business

Product/Servic
e
Obsolete in
20 years

Earnings
Per Share
(EPS)

Return
on
Equity
(ROE)

#6

#7

#8

#9

#10

Debt

Free to
Raise
Prices

Large
Cap. Exp
Needed

On Sale

Valuation

Business Analyzer Worksheet

Pass

Pass

Pass

Pass

Pass

Pass

Pass

Pass

Pass

Fail

Fail

Fail

Fail

Fail

Fail

Fail

Fail

Fail

Undervalue
d
Fair valued
Overvalued