Value Line Publishing There are two leaders for retail building-supply industry: Home Depot and Lowe’s‚ the two companies captured more than third of the total sale of the industry. Home Depot hold 22.9% market shares of the industry and Lowe’s hold 10.8% market share. Two companies are head to head competitor but focus on different market‚ Home Depot focused on large metropolitan areas and Lowe’s focused on rural area. Two companies both maintained online stores. Lowe’s has its own Web site: “Accent
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Value Line Publishing‚ October 2002 In Case Number 12‚ "Value Line Publishing‚ October 2002‚" Carrie Galeotafiore presents a five-year financial forecast that shows Home Depot in an positive light. It also prepares to do the same with an analysis of Lowe’s. She supports the changes proposed by the new Home Depot CEO and that would play a role in improving Home Depot’s financial health in the home center and building industry. Galeotafiore supports her by mentioning a number of sources that
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VALUE LINE PUBLISHING‚ OCTOBER 2002 Case Analysis Report Introduction The Retail Building – Supply Industry remains to be going strong despite the slow economic growth in 2002; this is due to low interest rates and strong housing market. This industry with the size of $175 billion is expected to reach $194 billion after five years. In this consolidating industry‚ two key players are dominating: Home Depot‚ which is holding 29% of the market‚ and Lowe’s that has 10.8% market share. Both wanting
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Value Line Publishing Problems: The case highlights the performance review and financial-statement forecasting decisions of a Value Line analyst for retail building-supply industry in Oct 2002. The industry is dominated by two firms: Home Depot‚ with strong operating performance and Lowe’s‚ with strong stock-market performance. The industry is highly consolidated with two major players‚ high barriers to entry and with the independent hardware stores struggling to remain competitive. This is also
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VALUE LINE PUBLISHING‚ OCTOBER 2002 Teaching Note This case follows the performance-review and financial-statement-forecasting decisions of a Value Line analyst for the retail-building-supply industry in October 2002. The case contrasts the strong operating performance of Home Depot with the strong stock-market performance of Lowe’s. Students examine a financial-ratio analysis for Home Depot that acts as a template to generate a comparable ratio analysis for Lowe’s. The students’ ratio
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Value Line‚ in its current form‚ was incorporated in 1982 and is the successor to substantially all of the operations of Arnold Bernhard & Co.‚ Inc. In June 2005‚ AB & Co. owned approximately 86.5% of the Company’s issued and outstanding common stock. The Company produces investment related periodical publications through its wholly owned subsidiary‚ Value Line Publishing LLC ("VLP") . VLP publishes in both print and electronic formats The Value Line Investment Survey®‚ one of the nation’s major
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SENSITIVITY ANALYSIS The solution obtained by simplex or graphical method of LP is based on deterministic assumptions i.e. we assume complete certainty in the data and the relationships of a problem namely prices are fixed‚ resources known‚ time needed to produce a unit exactly etc. However in the real world‚ conditions are seldom static i.e. they are dynamic. How can such discrepancy be handled? For example if a firm realizes that profit per unit is not Rs 5 as estimated but instead closer
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Notes VII Sensitivity Analysis 1 Introduction When you use a mathematical model to describe reality you must make approximations. The world is more complicated than the kinds of optimization problems that we are able to solve. Linearity assumptions usually are significant approximations. Another important approximation comes because you cannot be sure of the data that you put into the model. Your knowledge of the relevant technology may be imprecise‚ forcing you to approximate values in A‚
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Health economics What is sensitivity analysis? Matthew Taylor PhD MSc Senior Consultant‚ York Health Economics Consortium‚ University of York G While economic models are a useful tool to aid decision-making in healthcare‚ there remain several types of uncertainty associated with this method of analysis. G One-way sensitivity analysis allows a reviewer to assess the impact that changes in a certain parameter will have on the model’s conclusions. G Sensitivity analysis can help the reviewer to
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Sensitivity analysis is a technique that indicates exactly how much a project’s profitability (NPV or IRR) will change in response to a given change in a single input variable‚ other things held constant. Sensitivity analysis begins with a base case developed using expected values (in the statistical sense) for all uncertain variables. Then‚ each uncertain variable is usually changed by a fixed percentage amount above and below its expected value‚ holding all other variables constant at their expected
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