S/F/29. Analysis and valuation of the Morrison Supermarkets financial position

This work is dedicated to financial statement analysis of Wm Morrison, one of the biggest retail supermarket chains in the UK. Although financial analysis and valuation are the main goals of the paper comprehensive study of competitive position of the company as well as its business strategy is accomplished. These steps help to understand sustainability of present revenues in future which will be the main factor of DCF analysis. Accounting analysis allowing for potential distortions in the financial statements is also fulfilled. Thorough financial ratio analysis, including cross-sectional and longitudinal analysis of nearest competitors, favourably distinguishes this work from the similar valuations. DCF analysis based on the 5-year forecasting of financial results and Comps analysis of the firms multiples lead to fair value of the company. Another beneficial feature of this work is that it takes into account the merger of Safeway chain with Wm Morrison. All valuation procedures are conducted for the new company. This work will be indispensable for students who need to make comprehensive financial ratio analysis and evaluation of retail outlets.