Repository logo
 

Valuing a listed retailer on the JSE : a case study of Edcon.

Loading...
Thumbnail Image

Date

2003

Journal Title

Journal ISSN

Volume Title

Publisher

Abstract

This dissertation relates to the study of valuing a business. Edcon, a well known listed retailer, was found its market values to be lower than its net asset value at 2002 financial year-end, while all of the major competitors of Edcon had a market value considerably in excess of net asset value. It was possible that Edcon's share was underpriced at year-end recently, as it was known that Edcon was a well-managed company with sound fundamentals. The "true" value of Edcon was investigated in this dissertation. Two valuation models, Discounted Free Cash Flow and Economic Profit model, were used and simple assumptions had to be made in order to arrive at a consensus valuation in this dissertation. Finally, all valuation performed in this case revealed that the share of Edcon was underpriced at year-end, and it was concluded that investors using these fundamental valuation methods and buying the shares could have made a profit.

Description

Thesis (MBA)-University of Natal, Durban, 2003.

Keywords

Johannesburg Stock Exchange., Financial institutions--South Africa., Business enterprises--South Africa--Finance., Edcon (Firm), Theses--Business administration.

Citation

DOI