A Quantitative Research on Investing in the Entertainment Industry by Using DuPont and FCFE Analysis

Abstract

For individuals, organizations, and businesses intending to make investments in the stock market, investment decision analysis is essential. Making wise investing decisions can result in substantial financial gains, while making the wrong choices can result in substantial financial losses. Therefore, it is essential to employ analytical techniques and tools to evaluate businesses' investment potential. Investors can choose the businesses with the greatest potential for development and profitability by examining a company's financial and operational performance, management team, competitive environment, and other criteria. Investors can establish a company's intrinsic value and use that information to decide whether to purchase or sell its stock by thoroughly analyzing its financial statements and market trends. In addition, it is crucial to take into account a company's environmental effect, social responsibility, and governance practices given the increased emphasis on environmental, social, and governance (ESG) considerations. Long-term returns and more sustainable investments can both result from incorporating ESG analysis into investment decision- making. In general, investment decision analysis gives investors the resources they need to reduce risks and make educated decisions. As a result, there is a critical need for study into the best techniques for evaluating businesses and locating the most exciting investment prospects. This study can assist investors in navigating the complicated and quickly changing world of stock investing and in making lucrative investment choices that are consistent with their moral and financial objectives. There are various sectors available for an individual to invest. In this project, Entertainment sector will be focused. Print, radio, television, and motion pictures make up the media and entertainment sector. Movies, TV shows, radio shows, news, music, newspapers, magazines, and books are among these categories. One of the sectors in the world with the fastest growth rates right now is the entertainment business. In addition to being in charge of their own jobs, entertainment industry workers influence how others live their lives. This business is so large that it can appear unnecessary to invest because so many people are already working in it. However, some business entities have been growing even more quickly than the others, and experts in the entertainment industry like Brian Graden have benefited from them.