The document analyzes Best Buy's (BBY) valuation and provides a recommendation. It summarizes that:
1. BBY's "Renew Blue" turnaround strategy aims to balance cost leadership with differentiation, but this is paradoxical and difficult to achieve.
2. Financial valuations using the EVA, FCFU, and FCFCE models indicate that BBY is overvalued at its current stock price.
3. Sensitivity analysis shows that even with optimistic growth rate assumptions, the maximum forecast price is below the current stock price, reinforcing the assessment that BBY is overvalued given challenges with its business strategy.
michel portet Strategy ppt by Mudasir AliMudasir Ali
what is strategy by Michel Porter... Fit , leverage COMPETITIVE ADVANTAGE...Competitiveness ...strategic positionong..growth trap, strategic positioning and role of leadership...
michel portet Strategy ppt by Mudasir AliMudasir Ali
what is strategy by Michel Porter... Fit , leverage COMPETITIVE ADVANTAGE...Competitiveness ...strategic positionong..growth trap, strategic positioning and role of leadership...
Moving Beyond Reverse Auctions for Scalable, Sustainable ValueEmptoris, Inc
Learn how companies are stepping back from the one-size fits-all application of the reverse auction and leveraging more advanced sourcing solution that better support their sourcing strategies to generate sustainable savings of 7% in categories repeatedly sourced year after year.
For more information, please visit:
Emptoris website: http://www.emptoris.com/
Emptoris blog: http://emptorisinc.blogspot.com/
YouTube channel : http://www.youtube.com/emptoris
Moving Beyond Reverse Auctions for Scalable, Sustainable ValueEmptoris, Inc
Learn how companies are stepping back from the one-size fits-all application of the reverse auction and leveraging more advanced sourcing solution that better support their sourcing strategies to generate sustainable savings of 7% in categories repeatedly sourced year after year.
For more information, please visit:
Emptoris website: http://www.emptoris.com/
Emptoris blog: http://emptorisinc.blogspot.com/
YouTube channel : http://www.youtube.com/emptoris
Alle Oostendse lichten blijven op rood staanThierry Debels
Een jaar geleden verscheen het artikel ‘Oostende kleurt bloedrood’. Het ging over de slechte resultaten van diverse Oostende (autonome) gemeentebedrijven .
Jaar later
Vandaag zijn de resultaten van deze Oostendse gemeentevehikels over 2015 gepubliceerd. Laten we de situatie opnieuw analyseren. Zonder de ontknoping al te willen weggeven: de Oostendse gemeentelichten blijven op rood staan.
AG EOS
Het Autonome Gemeentebedrijf Energiebesparing Oostende (EOS) heeft de resultaten over 2015 recent gepubliceerd. ‘De stad Oostende wil iets doen aan de hoge energiefacturen en de klimaatverandering. Daarom richtte ze EOS op. EOS wil iedere Oostendenaar stimuleren om energie te besparen en gebruik te maken van alternatieve energiebronnen.’ In 2015 werd door EOS wel een verlies van 34.328 euro opgetekend.
Kursaal
Ook de NV Exploitatie Kursaal Oostende (EKO) heeft de jaarrekening over 2015 gepubliceerd. In 2015 werd net geen miljoen euro verlies geleden. In 2014 ging het verlies zelfs boven het miljoen euro.
Zelfs Haven Oostende duikt in het rood
Het Autonoom Gemeentebedrijf Haven Oostende heeft eveneens de jaarrekening over 2015 gepubliceerd. Het boekjaar werd afgesloten met een (weliswaar beperkt) verlies van 61.863 euro. Maar ook daar kleurde 2015 dus bloedrood.
AGGB
Het Autonoom Gemeentebedrijf voor Grond- en Bouwbeleid (AGGB) behandelt alle verkavelingen en onteigeningen en verricht de ‘immobilaire bewerkingen’ – zo staat het op de webstek – van en voor de stad Oostende. Het gaat om de opvolger van het Bedrijf voor Grond en Bouwbeleid. Het AGGB publiceerde onlangs de statuten in het Belgisch Staatsblad. Johan Vande Lanotte is volgens de laatste balans voorzitter van de Raad van Bestuur. Ook het AGGB heeft recent de jaarrekening gepubliceerd. Over 2015 zien we een verlies van liefst 212.832 euro. Het vormt onmiddellijk ook het eerste overgedragen verlies van het bedrijf.
Slotsom
Drie Oostendse autonome gemeentebedrijven doken in 2015 in het rood. Het is zeker niet de bedoeling dat dergelijke bedrijven woekerwinsten maken maar het nastreven van een financieel evenwicht is toch niet teveel gevraagd? Vreemd dat de burgers blijven aanvaarden dat verliezen naar de gemeenschap overgeheveld worden. Eén ding is duidelijk: het is geen toeval dat de rood de kleur is van de socialisten. Met dank aan de boekhouders die de verliezen met rode inkt noteerden.
Электронный бюллетень «Юнисон Групп» за первый квартал 2016 года.Unison Group
Рады представить Вашему вниманию электронный бюллетень «Юнисон Групп» за первый квартал 2016 года. Документ описывает все ключевые события и достижения Альянса по всем проводимым программным направлениям:
• информационные кампании,
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• Программа финансирования устойчивой энергии (KyrSEFF),
Kitab ringkasan materi balaghah yang disajikan secara sistematis, lebih mudah dipahami karena langsung pada pokok bahasan. Kitab ini cocok untuk kamu yang sedang belajar ilmu balaghah.
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Sản phẩm dưỡng da MỚI - Hàng nội địa Nhật chính hãngThuốc bổ Nhật Bản
Shop chuyên hàng thực phẩm chức năng Nhật Bản - Made in Japan 100% (hàng nội địa Nhật chính hãng). Hình ảnh cung cấp là ảnh thực tế của sản phẩm với thông tin đúng theo chỉ dẫn của nhà sản xuất.
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How to deal with gaslighting? Women suffering from an abusive relationship should join the Betrayal Trauma Recovery Center for therapeutic advice. Visit us for more details:-https://www.btr.org/
Five key elements that drive the value of your businessMatthew Wirgau
Use These Five Fundamentals to Increase Your Business Value
Every business owner, Board of Directors, CEO, President, or entrepreneur should know the value of their business.
Because it’s hard to accurately determine the value of a business, many just ignore it. Too often, business owners get a mistaken view of value when they hear the price that another business owner received. I call this “the Valuation Gap”.
Business value is a combination of profitability, future certainty of profits, and the transfer-ability of the profits to a new business owner.
Knowing the value of your business is a prerequisite to good management.
Even if you have no intention of selling and you will be passing your business on to your next generation, you should know its value.
Going through the valuation process gives insight into your company’s historical performance and its potential future.
If you know the value of your business, you will be more prepared to make effective management decisions that will make it more successful in the future. If you don’t know the value of your business and what is driving its value, you could very easily end up doing things and making mistakes that will destroy its value over the long-term.
7 Steps to Maximize the Value of Your BusinessCBIZ, Inc.
This presentation discusses the Seven Steps to Increase the Value of your Company
• How is Value Influenced - Pricing
• How is Value Influenced – Transaction Type
• Strategic Sale vs. Leveraged Recapitalization
• How is Valued Influence – Tax Considerations
For more information, please visit http://www.cbiz.com
Glen Birnbaum, CPA presents to local Peoria IMEC group on the business valuation process. The target audience was to manufacturing clients. Heinold Banwart, Ltd.
A detailed study on how e-commerce works and what it stands for, and later on more discussed about how the big firms use many different types of e-commerce strategies. Also focused on how successful and important is Ecommerce in this era.
While most retailers focus on the inventory that is visible in their stores and distribution centres, too few pay attention to the hidden costs of high inventory.
Internal analysis, the six fundamental questions answered in analyzing the internal environmental of business.How well the company’s present strategy working,Discuss the difference between corporate level strategy and business level strategy,the four building blocks and their impact on overall company strategy,Define horizontal and vertical integration with example,explain the five major competitive strategy?
2. Executive Summary
We recommend against buying the BestBuy because
of the following reasons:
1. The turnaround strategy is a paradox.
2. The financial valuations indicate that the
company is overvalued.
4. Business Strategy
Current Strategy:
Cost Leadership
Turnaround Strategy
(“Renew Blue”*)
Cost Leadership
- More price
competitive
- Focus on core business
activities
- Shut down
unprofitable stores
- Employee termination
Differentiation
- Better customer’s
physical experience
- More customer-facing
labor
- Train store associates
- Upgrade stores
Competitive Advantages?
Hard to balance between cost competitive and cost
increased by differentiation **.
Trend
Sources: * BBY 2015 financial report. ** http://www.businessinsider.com/best-buys-strategy-is-a-paradox-2014-
5. Risk Analysis
• Strong competition from traditional store based
retailers, multi-channel retailers, internet-based
business.
• Failure to effectively manage cost.
• Hard to attract qualified employees in key positions
especially under a cost reduction strategy.
• Change in credit ratings may limit capital access and
borrowing cost.
6. Key Forecast Assumptions
Key Forecast Assumptions Value Source
2016 Revenue Growth Rate -0.24% Yahoo Finance, Bloomberg…
2017-2020 Revenue Growth Rate 6.04% Thomson one, Yahoo Finance
Thereafter Revenue Growth Rate 2.00% U.S GDP growth rate
COGS in next three years -400 millions Letter to shareholders
Restructuring Charge in 2016 100 millions BBC news
Short Term Investments in 2016, 2017 150 millions BBC news
12. Multiple Valuation
Best Buy Co Inc
NYSE: BBY - May 1
35.18
54.72 47.47
However, we don’t think these
companies are very comparable to
BestBuy because Wal-Mart sells
more diverse products, Apple sells
products made by itself and Staples is
operating in a different industry.
EV/Sales Mutiple EV/EBITDA Multiple
Sales Revenue 40,339.00$ 1,387.00$
Ent Val Multiple 0.51 13.08
Enterprise Value 20,757.42$ 18,140.24$
-NonControlling Int - -
-Current Liabilities Debt 41.00$ 41.00$
-Long Term Debt 1,484.00$ 1,484.00$
-Preferred Shares -$ -$
Equity Value 19,232.42$ 16,615.24$
Shares Outstanding 351,468,000 351,468,000
Intrinsic Share Price 54.72$ 47.27$
Best Buy - Projected Value
Key Ratios Best Buy Apple Wal-Mart Staples
Profit Margin 22.43% 38.59% 24.83% 25.79%
ROA 7.36% 17.04% 8.03% 1.30%
ROE 22.46% 35.42% 20.10% 2.54%
P/E 10.54 15.64 15.64 78.43
Asset Turnover 2.64 0.79 2.38 2.18
Financial Leverage 3.05 2.08 2.50 1.94
Sales to NI Efficiency 2.78% 21.61% 3.37% 0.60%
13. Valuation Summary
EVA 33.38 Overvalued
FCFU 26.58 Overvalued
FCFCE 27.79 Overvalued
Best Buy Co Inc
NYSE: BBY - May 1
35.18
15. Conclusion
The table above is the range of BBY valuation. As it shows, the
maximum forecast price is $34.95, which still less than the current
stock price. Combined with its self-conflict business strategy, we
think BBY is overvalued.