{"id":14908,"date":"2021-07-01T22:11:06","date_gmt":"2021-07-01T22:11:06","guid":{"rendered":"https:\/\/valutico.com\/weekly-valuations-morrissons\/"},"modified":"2024-01-05T20:30:03","modified_gmt":"2024-01-05T20:30:03","slug":"weekly-valuations-morrissons-2","status":"publish","type":"post","link":"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/","title":{"rendered":"Weekly Valuations: Morrissons"},"content":{"rendered":"

Earlier this month British grocer Morrisons rejected a \u00a35.5bn takeover bid by US Private Equity firm Clayton, Dubilier & Rice. The UK’s fourth-largest supermarket, with 118,000 staff, said the offer “significantly undervalues” the firm.<\/p>\n

With the offer being just at the current market cap, could there be a case to support this claim and justify a higher valuation? Let\u2019s dive into some of the basics:<\/p>\n

– Revenue growth is forecasted to remain at low single digits for the next few years
\n– Net income margin is expected to remain around 2%<\/p>\n

Assuming this relative stability in the P&L, a DCF method yields a valuation range nearly 3x the current market cap (and CDR bid), giving credence to the firm’s pushback.<\/p>\n

But looking at market based methods we notice that the trading multiples for Morrisons\u2019 peers would suggest a valuation barely half of its current market capitalization; perhaps hinting why the bid didn\u2019t carry a significant premium.<\/p>\n

What is your take on the situation and do you think the offer was adequately priced? (link to the valuation<\/a>)<\/p>\n

\"No<\/p>\n","protected":false},"excerpt":{"rendered":"

Earlier this month British grocer Morrisons rejected a \u00a35.5bn takeover bid by US Private Equity firm Clayton, Dubilier & Rice. The UK’s fourth-largest supermarket, with 118,000 staff, said the offer “significantly undervalues” the firm. With the offer being just at the current market cap, could there be a case to support this claim and justify […]<\/p>\n","protected":false},"author":14,"featured_media":22701,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[226],"tags":[144,125,22],"ppma_author":[264],"yoast_head":"\nWeekly Valuations: Morrissons - Valutico | June 2021 valuation<\/title>\n<meta name=\"description\" content=\"Valutico performs a weekly valuation exercise to assess whether companies are undervalued or overvalued, today we look at Morrisons\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Weekly Valuations: Morrissons\" \/>\n<meta property=\"og:description\" content=\"Valutico performs a weekly valuation exercise to assess whether companies are undervalued or overvalued, today we look at Morrisons\" \/>\n<meta property=\"og:url\" content=\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Valutico\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-01T22:11:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-05T20:30:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/valutico.com\/wp-content\/uploads\/2021\/08\/Morissons-320x202-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"320\" \/>\n\t<meta property=\"og:image:height\" content=\"202\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Chris Botha\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Chris Botha\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/\"},\"author\":{\"name\":\"Chris Botha\",\"@id\":\"https:\/\/valutico.com\/#\/schema\/person\/e631528c4e9f9d9f0a6d8908511ee900\"},\"headline\":\"Weekly Valuations: Morrissons\",\"datePublished\":\"2021-07-01T22:11:06+00:00\",\"dateModified\":\"2024-01-05T20:30:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/\"},\"wordCount\":183,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/valutico.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/valutico.com\/wp-content\/uploads\/2021\/08\/Morissons-320x202-1.jpg\",\"keywords\":[\"Valuations\",\"valutico\",\"WeeklyValuations\"],\"articleSection\":[\"Valuations\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/\",\"url\":\"https:\/\/valutico.com\/weekly-valuations-morrissons-2\/\",\"name\":\"Weekly Valuations: Morrissons - 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