FINANCIAL ANALYSIS AND VALUATION OF SELECTED UK LISTED COMPANY: A CASE STUDY

Abstract

Objective: The objective of this study is to investigate the financial analysis and valuation of UK listed companies, with the aim of gaining insight into the financial performance and operational position of Hill and Smith Plc and other key players in the industry. Theoretical Framework: In this study, the main concepts and theories that underpin the research include the irrelevance theory, trade off theory, pecking order theory and market timing theory. These theories explain the underlying factors that determine the financing and valuation choices of listed firms. Method: The study adopted the net assets valuation, dividend discount model, free cashflows, earnings model, comparative companies, and comparative transactions valuation methodologies. The study adopted Hill and Smith Plc as a case study, extracting relevant data from its annual financial records. Results and Discussion: The study revealed a +4.17% abnormal return, suggesting an exceptional performance. It compared financial positions with peers like Morgan Advanced Materials and Keller Group, employing multiple valuation methods. The earnings model indicated a share price of £14.1, suggesting a potential overvaluation in the stock market at £10.0 per share. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of corporate finance and valuation. These implications impact various stakeholders such as the researched firms, investors, and academia. Originality/Value: This study contributes to the literature by highlighting the valuation methodologies employed in the study, emphasisng the importance of accurate valuation techniques in informing investment decisions.