Pacific Sunwear, Inc. – Valuation Analysis Valuation Method | Weight | Implied Value | Relative Valuation | 30% | $2.69; Range of $2.04 - $3.06 | Regression | 35% | $2.30; Range of $2.10 - $2.50 | Discounted Cash Flow | 15% | $2.37; Range of $1.92 - $3.18 | Precedent Transaction Analysis | 20% | $2.30; Range of $1.47 - $3.66 | | Value Range | $1.47 - $3.66 | | Estimated Price | $2.43 | | Market Price (04/19/13) | $2.40 | | Conclusion | Slightly Undervalued* | | Recommendation
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Planning by the Groningen Arts Centre The city of Groningen is an important population centre in the north of the Netherlands. People come from far and wide, even from other provinces, to its university, university hospital, new museum, large sports centre, and venues where big events are held. This list of regional facilities should also include the Groningen Arts Centre. In other words, Groningen ranks as one of the ten top cities in the Netherlands. The Groningen Arts Centre (GAC) includes four
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Understanding Financial Concepts – Assignment I 1. Explain why market prices are useful to a financial manager Managers are interested in market prices for reasons better explain by market of economic theory. The classic market of economic theory is a call auction market where all market participants meet in one place at one time to arrive at a market clearing price through open outcry of bids and offers. In agricultural societies, these markets were often held annually, at harvest time, but
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Demand and Supply of Certain Resources in Australia and Factors Other Than Price Which Affect Demand and Supply Demand and Supply of Certain Resources in Australia and Factors Other Than Price Which Affect Demand and Supply Question- How Demand and supply of certain resources in Australia and factors other than price which affect demand and supply? Contents Introduction Mechanism of Demand and Supply Analysis of demand and supply of certain resources of Australian Market: Conclusion
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MP3 technique we currently possess will position us strongly for the next five years, and while competition is likely to increase our advertising spending projection reflects our assumption that the product will be very competitive. Heavy upfront costs will, however, need to be invested, in order to reach the achievable unit volume of 1,000,000 per year for the first five years. As a result, we are looking at implementing an advertising campaign: the first year will involve a standard $850,000 advertising
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threat of new entrants, based on the Porter's five forces, a model for industry analysis, " Barriers to entry are more than the normal equilibrium adjustments that markets typically make." (Porter's Five Forces). If a company wants to enter a new market, it should consider about the following factors in the industry which are Government policy, economies of scale, capital requirements, brand identity, absolute cost advantages and Industry profitability etc. II. Threat of substitute products
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CVP Analysis is a powerful tool managers use; as it helps them in understanding the interdependency or relationship between cost, volume and profit in an organization mainly by focusing on interaction between elements such as a: Product Price b: Level or volume of activity c: Per unit variable cost d: Total fixed costs e: Mix of products sold. Assumptions: The cost volume profit analysis assumptions suggest that the selling price does not change and remains constant as the volume
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Dean Xu 1 Today’s Agenda House-keeping Vision, Mission & Values; Generic Strategy Yellow Tail Case Capstone: more tips, team formation. 2 Reference Textbooks Grant, R.M. “Contemporary Strategy Analysis” (recent editions) Blackwell Publishing Dess, G.G., Lumpkin, G.T., & Eisner A.B. “Strategic Management” (recent editions), McGraw-Hill Barney, J.B. & Hesterly, W.S. “Strategic Management and Competitive Advantage” (recent editions) Pearson. Hill
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opportunity to acquire Mercury Athletic Footwear, the results of the financial analysis below indicate Active Gear should proceed with the acquisition. Based on the Free Cash Flow Method, considering the financial projections and assumptions for Mercury Athletic, indicate the acquisition has a positive net present value of $112,778,000 [Present Value of Future Cash Flows (59,440,000) + Terminal Value ($276,921,000) – Purchase Price ($223,583,000)]. There are also possible synergies that could make the project
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Introduction………………………………………………………………………………… | 4 | Competitive Advantage…………………………………………………………………….. | 4 | Five Force Analysis………………………………………………………………….. | 5 | Threats of Substitutes Products and Service…………………………………………. | 5 | Buyer Power…………………………………………………………………………. | 6 | Supplier Power………………………………………………………………………. | 7 | Rivalry Among Existing Competitors………………………………………………. | 7 | The Threat of New Entrants………………………………………………………… | 8 | Cost Leadership Generic Strategy…………………………………………………… | 8 | Differential Generic Strategy…………………………………………………………
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