An In-Depth Analysis of the Comprehensive Valuation of Coles Group Limited

The Comprehensive Valuation of Coles Group Limited

By [Student’s Name]

Course Code and Name

Professor’s Name

University

City and State

Executive Summary

The purpose of the paper was to evaluate Coles Group’s share value using several methods. Australia’s largest retailer, Coles Group Ltd., is valued here using three different approaches: the Capital Asset Pricing Model (CAPM), the Gordon Growth Model (GGM), and the Relative Valuation Model. For Coles Group, the CAPM was used to examine the connection between anticipated earnings and risk, obtaining an annualized projected return of 4.31% and an annualized standard deviation of 0.036. Secondly, Coles Group’s shares were assessed using the GGM, which yielded a share price of $22.02, suggesting that the firm is undervalued. Finally, the Relative Valuation Model was used to evaluate Coles Group’s value by comparing it to other firms in the same industry, indicating that the company trades at a discount to its peers.…