Corporate Finance: Economic Value Addition Analysis of Zoopla Property Group PLC

Running head: CORPORATE FINANCE
Corporate Finance
Name of the Student:
Name of the University:
Authors Note:

1CORPORATE FINANCE
Contents
Introduction:....................................................................................................................................2
Zoopla PLC:.....................................................................................................................................2
Economic Value Addition (EVA) analysis:....................................................................................2
Current valuation of equity:...........................................................................................................10
Conclusion:....................................................................................................................................16
References:....................................................................................................................................17

2CORPORATE FINANCE
Introduction:
The investors and the shareholders of an organization primarily have two objectives
while making investment, namely to earn return on their investment in the form of dividend for
the shareholders and to maximize their wealth in the form of capital appreciation of their
investments. The economic value addition (EVA) is a concept often used to calculate the return
earned by the shareholders over a period of time on the amount investment in the form of capital
appreciation. Detailed calculation has been made to discuss the EVA to the shareholder of
Zoopla Property Group PLC in this document.
Zoopla PLC:
Owned by Silver Lake Partners, Zoopla Property Group PLC, here in after to be
mentioned as ZPG only in this document, is a company based in United Kingdom. The company
is a listed entity of London Stock Exchange. It is mainly involved in providing customers access
to the information about real estate properties including statics about current valuation along
with expected future values of such properties. The renowned property website Zoopla belongs
to the company and provides useful information to the users about prices of sold houses,
statistics and other data about such properties.
Economic Value Addition (EVA) analysis:
As already mentioned that EVA analysis helps in identifying the effects on the wealth of
investors in a company over period of time. In order to analyse the EVA of the company over the
last five years the financial information required has been collected from the annual reports of
the company of last five years including 2017 (Laszlo and Cescau, 2017).
Net asset valuation:

3CORPORATE FINANCE
The EVA analysis on the basis of net asset value of the company over the last five years have
been calculated by deducting the total outside liabilities from the aggregate amount of total assets
of the company.
All amounts are in GBP’000:
Years 2017 2016 2015 2014 2013
Intangible assets 49
1,020.00
32
2,621.00
253,
674.00
1
,457.00 106.00
PPE
6,560.00 6,413.00
1
,930.00
75
,194.00
76
,537.00
Financial assets available
for sale 4,461.00 724.00
9
,563.00
Trade receivables
3,262.00
7
,446.00 437.00
Current trade and other
receivables
3
8,531.00
3
6,615.00
22
,780.00
5
,887.00
4
,903.00
Cash at hand and cash at
bank
7
5,368.00 3,367.00
19
,199.00
31
,025.00
28
,123.00
(A) Total assets 61
5,940.00
37
3,002.00
305,
029.00
114,
000.00
119,
232.00