Date of Award

Spring 5-17-2019

Document Type

Project (696 or 796 registration)

Degree Name

Master of Science in Accounting & Finance

Department

Graduate Studies

Committee Chair

Eduardo Pablo

Keywords

Christopher and Banks Corp., Financial analysis, Stock performance, Chico's, investment, WACC

Abstract

This project report entitled to “Financial Analysis and Valuation of Christopher and Banks Corporation.” The main objective of the study is to analyze the financial position of the company for the past five years from 2014 to 2018, in contrast to, its main peer company “Chico’s Inc.,” and to study a 5-year stock price performance as of March 29,2019. The historical financial data were collected from the company’s annual 10 ks. The balance sheet, Income Statement, and Cash Flow Statement are forecasted for the next four years from 2020 to 2023. Financial metric used to measure the financial performance of the company is ratio analysis. Charts and tables are used to illustrate the stock price performance and the productivity, liquidity, leverage, and profitability position of the company.

The results showed that Christopher and Banks Corporation is experiencing negative returns by 68.22% on its stock, it has poor stock performance from March 2018 to March 2019. The calculated numbers showed that the current financial position for the company is weak and that it is not a good company for investment due to negative returns and the instability of cash flows. Weighted Average Cost of Capital is also calculated to reveal the unstable and unpredictable state of cash flows in a risky company. I recommended not investing in the company since its stock is actually trading lower than estimated.

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