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Investment Analysis and Valuation of Tesco Plc - Essay Example

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The author discusses the analysis and valuation of Tesco Plc including its products, customers, employees, management, and corporate governance. The author also highlights in a passing the methodology used in evaluating the company and makes a conclusion and recommendation to prospective investors …
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Investment Analysis and Valuation of Tesco Plc
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Download file to see previous pages In the face of this situation and their quest for an alternate answer, investors turn to various media including internet chat rooms, printed press, “talking heads” on television and financial networks, who often voice opinions on what they feel the stock prices should be. (Penman, 2003). In addition, investors consult investment analysts who provide an almost endless stream of information and recommendations to sort out. There are often claims that some shares are undervalued and vice versa. (Penman, 2003).
Faced with too much information, Investors at times get confused with no clear indication of what the true prices of stocks should be. (Penman, 2003). Under such circumstances, the investor either make a decision based on his or her instinct, such investors according to Penman (2003) are intuitive investors while others who make their decision based on capital market efficiency are referred to as passive investors.
These investment mechanisms appear to be very simple, as they do not require much effort. (Penman, 2003: pp 3). However, that is not the case as neither passive nor intuitive investor turn to be better off in the face of their decision. This is so because these sets of investors can either pay to high or sell too low.
Having said that, in the sections that follow, I will discuss the analysis and valuation of Tesco Plc including its products, customers, employees, management, and corporate governance. I have also highlighted in a passing the methodology used in evaluating the company. In the last section, I will make a conclusion and recommendation to prospective investors.
Tesco Plc is one of the market leader and a global player in the retail industry. The main activities of the company include food retailing, insurance, banking, and other services.    ...Download file to see next pagesRead More
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