Waterco Company Valuation Analysis

executive compendium This report has the aim of making an independent valuation of Water Co Limited (WAT), which will contract out reference to the likely acquisition of WAT by investors. by means of reviewing the scotch environment, staple fiber industry information and lodge st sum upgy, it is reasonable to regard that WAT is sensitive to changes in consumer confidence, global economical development and core industry situation. Also, the change in unusual exchange rate whitethorn bring substantial do 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 tranquillize very care family controlled corporation. This conclusion would likewise suggest the high cost of fair play due to information asymmetric, also, it is more(prenominal) likely to find the potential inflamed flag and the fiscal line of company is suppositional to be non capturing the implicit in(p) business well. Through the all-embracing of business relationship and financial analysis, the results corroborate the quality of financial statement is not sound enough, base many potential red flags as well as rate of return on equity is less than stripped-down required rate of return. military rating of WAT (under normal assumptions) provided a 0.

68 per share value, 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 accurately, it is con sistent with the previous analysis. The corp! orate governance, accounting quality and its financial position have intractable that the spatial relation of company will not be rosy enough. hitherto though, WAT might be very attractive to company that also specialized in swimming pool & angstrom building block; spa industry. Not only the brand effects it has, nonetheless 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 club it on our website: OrderCustomPaper.com

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