Business valuation of Tesco: Calculation of different valuation methods and presentation of differences between them.

Mark Dinkhoff

Sept. 2009 · GRIN Verlag

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Seminar paper from the year 2007 in the subject Business economics - Investment and Finance, grade: 1,3, University of Lincoln (Business School), course: Financial Management, language: English, abstract: Below you will find a financial report about Tesco.plc which is quoted on the London Stock Exchange (TSCO.L). Firstly, the company is valued on the basis of five differ-ent approaches (NAV, PER, DCF, DVM, EVA) and secondly, the different approaches are compared to detect distinctions. Maximising shareholder value is the superior aim in this context but what about claims of stakeholders like workforce for example? Tesco is one of the world`s biggest retailers with over 2,700 stores worldwide. The core business is food retailing but Tesco has diversified its assortment in recent years into the non-food sector, banking, insurance and telecommunications.1 Tesco had a market capitalisation of 33,144.63 million pounds and 7,919.863 million issued shares on 14.01.2007.2 This coursework underlies the limitation of limited data input. Within the coursework it is not possible to forecast future based figures like growth rates for example as de-tailed as possible, therefore results can have big variations. Nobody is able to predict the future, but more detailed input figures will achieve better results.