Valuation Royal Mail Plc
Autor: dlim.mifft2015 • September 24, 2015 • Coursework • 8,584 Words (35 Pages) • 1,287 Views
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Appendix 1: USP Regulatory Framework | 30 |
Appendix 2: UKPIL Parcel Delivery Services | 32 |
Appendix 3: Determining WACC: Regression | 33 |
1. Executive Summary
Our group performed a valuation analysis of Royal Mail plc (“RM”). This company was privatized and listed on the London Stock Exchange in October 2013 with the ticker RMG:LN. In order to cope with the structural decline in its traditional postal business, RM embarked on a long-term plan to transform its business to focus on higher growth parcel deliveries. Although its transformation efforts have led significant improvements in productivity and lower of costs in recent years, we believe that future cost reductions will be limited. With increasing competition in all of RM’s key business segments, we expect revenue growth to be under pressure and margins to be squeezed in the near term.
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