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Stuff

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Submitted By pmgsPT
Words 34911
Pages 140
Sara Lee Equity Analysis and Valuation
Valued at 1 April 1, 2007

Analysts: Todd L. Ehlers: todd.ehlers@ttu.edu Michael D. Estes: mikestes@sbcglobal.net Daniel W. Taylor: dtaylor1184@yahoo.com Joseph R. Torres: rhyno1112@sbcglobal.net

Table of Contents

Page Number

Executive Summary……………………………………………………………………………………………… 2 Analysis Snapshot............................................................................................ 2 Company and Industry Overview…………………………………………………………………… 3 Accounting Analysis………………………………………………………………………………………. 3 Financial Ratio Analysis…………………………………………………………………………………. 4 Analysts Evaluations……………………………………………………………………………………… 4 Overview of Firm and Industry............................................................................... 5 Industry Overview and Analysis………………………………………………………………………….. 8 Rivalry Among Existing Firms………………………………………………………………………….8 Threat of New Entrants…………………………………………………………………………………. 15 Threat of Substitute Products………………………………………………………………………… 17 Bargaining Power of Buyers…………………………………………………………………………… 18 Bargaining Power of Suppliers……………………………………………………………………….. 20 Characterization of Industry……………………………………………………………………………20 Value Chain Analysis: Key Success Factors…………………………………………………………. 21 Competitive Advantage Analysis…………………………………………………………………………. 23 Cost Leadership……………………………………………………………………………………………. 24 Differentiation……………………………………………………………………………………………….27 Accounting Analysis……………………………………………………………………………………………… 30 Key Accounting Policies…………………………………………………………………………………. 30 Accounting Flexibility……………………………………………………………………………………..33 Accounting Strategies…………………………………………………………………………………… 36 Quality of Disclosure…………………………………………………………………………………….. 41 Manipulation Diagnostics………………………………………………………………………………. 43 Potential Red Flags………………………………………………………………………………………. 49 Undo Accounting

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