Waterco Company Valuation Analysis

executive compendium This report has the aim of making an self-supporting valuation of Water Co Limited (WAT), which will draw out reference to the likely acquisition of WAT by investors. through and through reviewing the scotch environment, radical industry information and lodge st amount of money upgy, it is reasonable to regard that WAT is sensitive to changes in consumer confidence, global economic development and core industry situation. Also, the change in impertinent exchange rate whitethorn bring substantial personal effects on sales revenue. Through reviewing the incarnate governance of WAT as well as the ownership structure, which get a basic conclusion that although it is a public listed company, the intrinsic characteristics of company is excuse very care family controlled corporation. This conclusion would in addition suggest the higher(prenominal) cost of fair play due to information asymmetric, also, it is more likely to find the potential inf lamed flag and the financial line of company is suppositional to be not capturing the central business well. Through the all-embracing of business relationship and financial analysis, the results support the quality of financial statement is not sound enough, appoint many potential red flags as well as rate of return on equity is less than stripped required rate of return. military rating of WAT (under normal assumptions) provided a 0.

68 per share footing, which is less than current trade price (1.25 per share). As a conclusion, WAT is overvalued by market. Although the valuation may not be very acc urately, it is consistent with the previous ! analysis. The corporate governance, accounting quality and its financial position have intractable that the berth of company will not be rosy enough. raze though, WAT might be very attractive to company that also specialized in swimming pool & angstrom whole; spa industry. Not only the brand effects it has, that also the abundant experiences in manufacturing and distributing water products globally. Contents Executive Summary1 1.Introduction4...If you want to get a full essay, ball parliamentary procedure it on our website: OrderCustomPaper.com

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