Macquarie University ECFS866 Corporate Finance Report Analysis

This report analyzes the financial performance and valuation of Seven Group Holdings (SGH). It examines the company's enterprise value, components, and financing approaches, differentiating between debt and equity. The report calculates the cost of capital, including the cost of equity using CAPM and the cost of debt, and applies the Dividend Discount Model (DDM) to determine the intrinsic value of shares. Additionally, it employs a multiple valuation method, considering competitor companies, to assess equity valuation across SGH's industrial, energy, and media divisions. The analysis provides recommendations based on the valuation results and explores the implications of converting securities into equity shares. The report concludes with a bibliography of relevant sources.