Waterco Company Valuation Analysis

executive compendium This report has the aim of making an self-supporting valuation of Water Co Limited (WAT), which will force out reference to the likely acquisition of WAT by investors. with reviewing the scotch environment, elementary industry information and lodge st perfume upgy, it is reasonable to regard that WAT is sensitive to changes in consumer confidence, global stinting development and core industry situation. Also, the change in international exchange rate whitethorn bring substantial 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 good-tempered very care family controlled corporation. This conclusion would besides suggest the higher(prenominal) cost of fair play due to information asymmetric, also, it is more likely to find the potential inflamed flag and the pe cuniary line of company is suppositional to be non capturing the fundamental business well. Through the all-embracing of accountancy and financial analysis, the results corroborate the quality of financial statement is not sound enough, tack many potential red flags as well as rate of return on equity is less than minimal 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 consistent wit h the previous analysis. The corporate gover! nance, accounting quality and its financial position have intractable that the attitude of company will not be rosy enough. blush though, WAT might be very attractive to company that also specialized in swimming pool & angstrom unit of measurement; spa industry. Not only the brand effects it has, however 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 association it on our website: OrderCustomPaper.com

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