Ivey Publishing
Food Empire: Valuation and Investment
Product Number:
9B17N006
Publication Date:
03/09/2017
Revised Date:
03/27/2017
Length:
20 pages (4 pages of text)
Product Type:
Case (Pub Mat)
Source:
Ivey/NUS
Food Empire Holdings Limited (Food Empire) was a food and beverage brand owner and manufacturer of instant beverage products, frozen convenience food, confectionery, and snacks. Its main markets were Russia and Ukraine. When the political tensions between Russia and Ukraine erupted and their currencies depreciated in 2014, Food Empire’s bottom line was badly affected: its share price dropped 71 per cent in 30 months. In light of these developments, investors were not sure if they should sell their investments in Food Empire. Using financial statement analysis and various valuation concepts—including net tangible assets, dividend discount models, and peer multiples—it was hoped that the best course of action could be determined.
Learning Objective:
This case can be used in an undergraduate or MBA course in investment analysis. It presents an opportunity for students to evaluate the intrinsic value of a company by interpreting the
  • liquidity ratios,
  • solvency ratios,
  • asset efficiency ratios,
  • profitability ratios, and
  • market value ratios.
Issues:
Disciplines:
Finance,  International
Industries:
Manufacturing
Setting:
Singapore, Large, 2016
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
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