Find

Search for over 100,000 subject notes and past assignments!

Swap

You can download study resources by swapping your own or purchasing Exchange Credits.

Study

Access your library anywhere, anytime.

University of New South Wales

See More

Document Details

Essay / Project

ACCT5910 Final Assignment
Page 1/31

ACCT5910 Final Assignment

ACCT5910 - Business Evaluation

31 Pages University of New South Wales Essay / Project Year Uploaded: 2017

1 Executive Summary CSL develops, manufactures, and sells biopharmaceutical mostly derived from immunoglobulins, a constituent of blood plasma. The compounds treat rare and fatal medical conditions involving the immune system. CSL has a narrow competitive advantage due to low cost of production, a global blood plasma distribution network, and superior intellectual property that allows innovative product development of high-quality therapeutic products for critical medical conditions. The biotechnology industry is expected to grow due to an aging global population, rise of tropical diseases and an increase use of biotech products in developing economies. The positive long term outlook for growth is expected to benefit CSL due to significant investment in R&D, specialty products and spare capacity. The company has maintained positive financial performance over the last 5 years, as evident from sound sales growth, outperforming competitors. It invests more in R&D than the median in the industry, which is expected to allow CSL to expand further with new products. Our analysis of historical accounting data did not reveal any attempts to manipulate earnings or accounting numbers. Management’s intended capital structure, which envisages the buyback of shares is expected to deliver more returns to shareholders. The stock, however, seems relatively expensive using forward valuation models. Our valuation of the stock uses DCF as the primary valuation methodology. Valuation via PE and enterprise values are used as check methodologies. We considered three DCF scenarios, a bear scenario, a base or expected scenario and a bull scenario. The stock price as at 12 May 2017 was $129 as compared to our fair value measure of $131.96. We consider the stock moderately under-valued and recommend BUY at this price. A fair value of up to $153.93 per share is supported by PE multiples. We recommend investors begins to REDUCE their holdings when the price approaches $153.93 and SELL at any price point beyond $161, which is the maximum fair value obtained using trading or EV multiples.

2 Exchange Credits
This is an Essay / Project

Essays / Projects are typically greater than 5 pages in length and are assessments that have been previously submitted by a student for academic grading.
What are Exchange Credits?

Exchange Credits represent the worth of each document on Thinkswap. In exchange for uploading documents you will receive credits. These can then be used to checkout other documents on Thinkswap.
Thinkswap Satisfaction Guarantee

Each document purchased on Thinkswap is covered by our Satisfaction Guarantee policy. If the document is not of an acceptable quality or the document was incorrectly described or categorised, Thinkswap will provide a full refund of Exchange Credits so you can purchase another document. For more information please click here.
Claim a Subject Bounty

Has this subject changed names or been replaced? Tell us and earn free Exchange Credits.

Share:

Similar Documents

Similar documents to "ACCT5910 Final Assignment" avaliable on Thinkswap

Documents similar to "ACCT5910 Final Assignment" are suggested based on similar topic fingerprints from a variety of other Thinkswap Subjects