Find

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

Swap

Download study resources by swapping your own or buying Exchange Credits.

Study

Study from your library anywhere, anytime.

ACCT5910 Final Assignment
Page 1/31
Page 1/31

ACCT5910 Final Assignment

ACCT5910 - Business Evaluation

31 Pages Essays / Projects Year: Pre-2018

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.


This document is 20 Exchange Credits

More about this document:

This document has been hand checked

Every document on Thinkswap has been meticulously hand checked to make sure it's correctly described and categorised. No wading through heaps of irrelevant content.

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.

We aren't happy till you're happy

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.

Students are required to always deal ethically with work on Thinkswap

Studying from past student work is an amazing way to learn and research, however you must always act with academic integrity.

This document is the prior work of another student and has been made available to plagiarism detection tools. Do not copy from this work. Understand how you can responsibly use this work by visiting ‘Using Thinkswap resources correctly’.

Claim a Bounty


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

Browse UNSW Subjects

University

High School