George Weston Limited Stock Analysis Report.Doc

|George Weston Limited |

|Stock Analysis Report |

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|4/6/2009 |

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Contents

Industry and External Environment 3

About George Weston Limited 3

Company Description 3

Challenges 3

Strengths & Weaknesses 4

Future Potential and Trends 5

Beta and Expected Return Calculations 5

Choice of Market Portfolio 5

Data Sources 6

Calculations 6

Results 6

Beta Analysis 7

Dividend Discount Model Valuation 7

Valuation by Comparables 9

Dupont Analysis 9

Investment Risks 12

Recommendation 13

Our Recommendation and the Public Concensus 13

Bibliography 14

Industry and External Environment

George Weston Limited is a company in the food processing and distribution industry. The industry includes a range of businesses, ranging from small shops and convenience stores to large supermarket chains. (Joseph Agnese, 2008) While competition among supermarkets has intensified, there has been a steady upward trend in food consumption by value over the past five years in Canada. The industry has experienced rapidly changing conditions in 2008 as rising gas prices, increasing food inflation, have reversed, while the economic recession and rising unemployment have become the new important factors affecting consumer spending.

About George Weston Limited

Company Description

George Weston Limited is one of the largest food...