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Executive Summary

Olympus is a Japan based multi-national company, first established in 12 October 1919 and is listed in the Nikkei index. Olympus is a manufacturer of optics and reprography products. The headquarter is located in Japan, but operations extends to many parts of the world. Olympus tried to innovate and expand in emerging markets. They were trading with monthly high from ¥4940 to monthly low of ¥1012 in 60 weeks. Share price movements have been extremely volatile since the start of 2008 till present due to several contributing issues that includes natural disasters and scandals.

In the first part of the report, we produced an analysis of the overview of Olympus financial performance, production, micro-economic and macro-economic impacts on the company. These analyses will generate a better understanding on how the various issues contribute to the share price changes.

Thereafter, We have used five different valuation models and it includes Dividend Discount Model, Free Cash Flow Equation, Price/Earnings Model, Price/Book Value Model, and Net Tangible Asset Model to evaluate the value of the current share price. This helps us to determine if the market share price is overvalued or undervalued thus enables investor to make investment decisions.

Key appeals of Olympus includes: * Strong recovery from past scandal * New experienced management team * Sony investments in 2013 announced * Tougher audit checks to prevent scandal from resurfacing

Negative appeals of Olympus includes: * Slowdown of Japan economy * Gloomy outlook of global financial economy * Decrease in investors confidence since scandal

Olympus - Valuation Summary on DDM and…...

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