Case Detail

Case Summary

Universal Display Corporation: Go Long or Short?

Case Number: 5-312-502, Year Published: 2013

HBS Number: KEL716

Request PreviewBuy

Authors: Robert KorajczykLinda Vincent; Matthew Galas; Saurabh Goyal; David Mathews; Danielle Qi

Key Concepts

Accounting, Cash Flow Analysis, Financial Analysis, Financial Statements, Investment Management, Market Analysis, Valuation

Abstract

This case asks the student to take a stance on whether an portfolio manager should take a long or short position in the equity of Universal Display Corporation (PANL). The stock is polarizing, in that reasonable arguments could be made for both long and short positions. The case suggests a number of steps that an analyst might follow when valuing a company.

Learning Objectives

Discounted cash flow valuation, comparables valuation, short selling. After students have analyzed the case they will be able to value the equity of a publicly traded company and take a position on whether a portfolio manager should buy or sell the stock.

Number of Pages: 24

Extended Case Information

Teaching Areas: Finance

Teaching Note Available: Yes

Geographic: Ewing, New Jersey, United States

Industry: Technology

Organization Name: Universal Display Corporation (PANL)

Organization Department: Equity Research

Organization Size: Medium

Decision Maker Position: Analyst

Decision Maker Gender: Male

Year of Case: 2012