The bachelor thesis aims to identify value stocks using Warren Buffett's principles and fundamental analysis and then compare value and growth stocks with the S&P 500 market index over the long term and during recessions. The practical part focuses on the valuation of Microsoft using the aforementioned fundamental analysis of the economy, the industry, and the company itself. It examines the intrinsic value of the stock using dividend discount, earnings, and cash-flow models. It also consid... show full abstractThe bachelor thesis aims to identify value stocks using Warren Buffett's principles and fundamental analysis and then compare value and growth stocks with the S&P 500 market index over the long term and during recessions. The practical part focuses on the valuation of Microsoft using the aforementioned fundamental analysis of the economy, the industry, and the company itself. It examines the intrinsic value of the stock using dividend discount, earnings, and cash-flow models. It also considers financial measures that Warren Buffett focuses on in his acquisitions, such as the debt-to-equity ratio (D/E ratio) or the return on total invested capital (ROIC). He then compares the stocks valued in this way to a market index and growth stocks over ten years and during the last two US recessions (associated with the 2020 coronavirus pandemic and the United States subprime mortgage crisis in 2007). |