Business Analyzer Worksheet

Name of Business: ___Sony___________________________________

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, only because they have a very loyal customer base. They are usually ahead of the world in some
technology areas.

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

If yes, describe how the product/service works.

2. Pass / Fail

Yes, they create different technological devices and software. Some of their products include PlayStations, Tablets, TVs, cameras, computers, and more.

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, I think they have enough money, and skills to continue developing and evolving their products.

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 QuoteFinancials
Year

2006

2007

2008

2009

2010

EPS

116.
6

120.0
3

351.7
2

98.59

40.66

2011
258.6
6

2012
455.0
3

2013
40.19

Has companys EPS consistently gone up each year? NO______

If not, was the weakness a one-time event? _NO_____

2014
124.9
9

2015
113.0
3

4. Pass / Fail

5. Is the company consistently earning a high return on equity?

(Finding Information on morningstar.com)
ROE for past ten years --- Key Ratios (will only show last 5 years)
Year
Return on
Equity

2006

2007

2008

2009

2010

2011

4.07

3.84

10.79

-3.08

-1.38

-9.42

2012
19.96

2013

2014

2015

2.04

-5.76

-5.51

Business Analyzer Worksheet

5 -Year Average Return on Equity _-7.72%_______
/ Fail

Higher than 15%? ___No____ 5. Pass

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
____$712,087,000________________ /
_5.7 years______________

_____$125,980,000_______________ =

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 =
__23.1________

___32_______

_.72_________

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