Wm Wrigley Jr. Company Equity Valuation and Research
Valued Nov 1, 2007
Dr . MEM Analysts Alan Inman Jonathan Haralson Indicate Leonard Pete Nash Shane Nowak joe. r. [email protected] edu t. [email protected] edu mark. [email protected] edu peter. [email protected] edu shane. [email protected] edu
Table of Contents
Exec Summary Organization & Sector Analysis Firm Overview Market Overview Five Forces Style Competitive Force One вЂ“ Rivalry Among Existing Firms Competitive Power Two вЂ“ Threat of recent Entrants Competitive Force 3 вЂ“ Threat of Replacement Products Competitive Force Several вЂ“ Negotiating Power of Customers Competitive Force Five вЂ“ Bargaining Benefits of Suppliers Value Chain Evaluation Firm Competitive Analysis Accounting Analysis Crucial Accounting Guidelines Potential Accounting Flexibility Real Accounting Approach Quality of Disclosure Revenue Manipulation Analysis 5 12 10 10 13 13 18 20 21 twenty three 24 27 30 31 35 thirty seven 39 41
Expense Manipulation Analysis Potential Warning Undo Accounting Distortions Financial Analysis Fluidity Ratio Evaluation Profitability Evaluation Capital Composition Analysis IGR and SGR Analysis Financial Statement Predicting Income Declaration Analysis Predicted Income Assertion Common Size Income Assertion Balance Sheet Examination Forecasted Balance Sheet Common Size Balance Sheet Expected Statement of Retained Profits Statement of money Flows Examination Forecasted Assertion of Cash Moves Common Size Statement of money Flows Cost of Equity Regression Analysis Cost of Debt Measured Average Expense of Capital
46 53 fifty four 55 fifty-five 64 71 76 79 78 80 80 seventy eight 84 eighty six 87 88 89 80 91 80 93 94
Valuation Analysis Technique of Comparables Intrinsic Valuations Discount Dividends Unit Free Funds Flows Model Residual Income Model Long Run Residual Income Abnormal Profits Growth Model Analyst Recommendation Appendix Liquidity Analysis Info Profitability Analysis Data Capital Structure Examination Data Regression Analysis Technique of Comparables Intrinsic Valuation Versions References
ninety six 97 102 103 105 107 110 114 116 117 117 118 119 120 132 133 138
Professional Summary Purchase Recommendation
WWY S (11/ 1/ 2007) -NY Electronic 52 Week R archange R evenue Market C ap H hares Spectacular Percent Institutional Ownership Publication Value every S what R FACTORY R OA C of C ost apital 3-month 1-year 5-year 7-year 10-year R a couple of -0. 0002 0. 0001 0. 0002 0. 0002 0 Beta 0. 1916 0. 1933 0. 1937 0. 1936 0. 1922 60. nineteen 48. 89-68. 44 5. 19B sixteen. 612B 276M 68. fifty percent 8. sixty-five 23. 91% 11. 87% Ke zero. 0664 zero. 0675 zero. 0683 0. 0694 zero. 0708
Altman Z-score Valuation E stimates Actual Price (11/ 1/ 2007) Monetary B ased Valuations Walking P/ Electronic Forward P/ E L. E.. G P/ N P/ At the BITDA P/ FC Farrenheit E Electronic V/ BITDA D/ G Intrinsic Values Discount Payouts Free C ash Goes R esidual Income LRR esidual Profits AE G
November you 2007
2002 2003 18. 52 18. 52 62. 19 2005 2005 2006 15. 08 7. twenty four 6. thirty-five
48. 42 39. 56 N/ A 79. 67 71. 2009 N/ A 28. 53
Published Beta Kd(BT) WAC (BT) C
0. 53 4. 48% 5. 68%
28. 46 43. 83 33. 54 25. 18 82. 82
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Recommendation вЂ“ Sell Industry Analysis The Wm. Wrigley Jr. Organization was founded in Delaware in 1891 by William Wrigley, Jr. It became a corporation in 1903 where that moved their corporate headquarters to Chi town Illinois. Wrigley Jr. Business competes in the confection sector with an emphasis on chewing gum. Wrigley commenced with two gum brands, spearmint and juicy fresh fruit and features since end up being the words number one manufacture of chewing and bubble gum. The company redirects to over one hundred and eighty countries and has 15, 800 workers worldwide. The Wm. Wrigley Jr. Business is a publically traded firm on the Nyse under the symbol, WWY. Wrigley's competitors consist of Hershey Co. (HSY), Cadbury Schweppes (CSG) and Tootsie Roll Sectors Inc. (TR). Competition between firms inside the confection Market is relatively excessive, because of volume of replacement products in the market. Threat of new entrants is usually low in the confection industry. New companies have...
References: Overvalued, sell off
Altman Z-score Valuation At the stimates Actual Price (11/ 1/ 2007) Financial M ased Valuations Trailing P/ E Forward P/ At the P. Elizabeth
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