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Essay about Dressen Case Study

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#1) I believe one major factor was how appealing Dressen had become during 1995, as opposed to previous years. It appeared that new management had turned the company around. Management stated Dressen was looking good for future growth during the end of 1995. I think management felt it was the opportune time to sell. They wanted to sell Dressen while they were making money and being successful, as opposed to hemorrhaging money from Westinghouse. Dressen was Westinghouse’s star performer in the Q3 of 1995. Sales increased 10% over the year-prior quarter. EBIT reached 12% of sales as well. Their growth strategy as well as technology and work processes lead management to believe that there was even greater growth potential. Dressen …show more content…

The higher the P/E, then the higher the net worth of the company. Enterprise Value to Sales is a valuation method that is applied to assess the ratio of enterprise value to its market share price. The Enterprise Value to Price ratio allows investors to make a decision on whether the market share of the company is expensive or cheap. The ratio has also considerable influence on the company’s sales as it is utilized by many market analysts to avoid any manipulation over the turnover of an entity. The Enterprise Value to Sales analysis is mentioned below: 1994 1995 Market Capitalization $ in Million 458 481 Total Debt in $ million 247 176 Total Worth in $ Million 705 657 Less: Cash in $ Million 5 2 Net Worth in $ Million 700 655 Annual Sales in $ Million 563 621 EV/Sales 124.33 105.48 The Enterprise Value to Sales is high in both years 1994 and 1995. This shows me that the net worth of the company is high. EBIAT is a financial appraisal technique which is used to figure out the operating performance of a company. It refers to how much resources have been utilized to generate revenue within a given span of

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