Waterco Company Valuation Analysis

executive compendium This report has the aim of making an independent valuation of Water Co Limited (WAT), which will suffer out reference to the likely acquisition of WAT by investors. done reviewing the scotch environment, rudimentary industry information and lodge st impart upgy, it is reasonable to regard that WAT is sensitive to changes in consumer confidence, global frugal development and core industry situation. Also, the change in remote exchange rate whitethorn bring substantial make 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 heretofore very care family controlled corporation. This conclusion would excessively suggest the high cost of fair play due to information asymmetric, also, it is to a greater extent likely to find the potential inflamed flag and the fiscal line o f company is suppositional to be not capturing the fundamental business well. Through the all-embracing of chronicle and financial analysis, the results sustain the quality of financial statement is not sound enough, put together many potential red flags as well as rate of return on equity is less than borderline required rate of return. military rating of WAT (under normal assumptions) provided a 0.

68 per share legal injury, 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 with the previous analysis. The corporate governance, account! ing quality and its financial position have intractable that the prospect of company will not be rosy enough. fifty-fifty though, WAT might be very attractive to company that also specialized in swimming pool & angstrom social unit; spa industry. Not only the brand effects it has, nevertheless 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 bludgeon it on our website: OrderCustomPaper.com

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