estimate your target price for FLT Share. Considering the current market price, briefly justify your investment recommendation for FLT. Write your answer in the box provided (5 MARKS).

The current market price of the stock is $35.68.

Please show:

Target Price (3 Marks)

Recommendation (2 Marks)

FY 2014 2,212.40 1,818.00 394.40 FY 2015 FY 2016 2,367.40 2,640.30 2,009.90 2,278.20 357.60 362.20 86.99 94.44 90.85 53.80 66.10 54.10 3.10 3.50 1.40 427.95 387.39 389.14 - 29.50 24.30 28.10 15.00 -5.10 -3.80 3.50 3.10 -1.40 379.95 116.86 In Millions of $AUD Revenue -COGS Gross Profit + Other Operating Revenue - Depreciation & Amortization - Other Operating Expenses EBIT - Interest Expense - Foreign Exchange Losses (Gains) - Net Non-Operating Losses (Gains) Pre-tax Income - Income Tax Expense Net Income (loss) In Millions of $AUD Assets + Cash & Near Cash Items + Short-Term Investments + Accounts Receivable + Inventories Total Current Assets + Net Fixed Assets + Gross Fixed Assets - Accumulated Depreciation + Other Long-Term Assets Total Long-Term Assets Total Assets 365.09 109.74 255.34 FY 2015 366.24 100.49 265.75 FY 2016 263.09 FY 2014 1,261.70 1,378.00 1,316.00 204.50 41.20 75.70 537.60 635.50 672.20 47 63.6 70.5 2,152.80 1,887.50 161.00 2,263.20 216.30 196.30 383.10 465.60 533.30 222.10 269.30 317.00 361.90 438.90 521.80 522.90 635.20 738.10 2,410.40 2,788.00 3,001.30 Liabilities & Shareholders' Equity + Accounts Payable 1040.5 1056.2 1487.1 + Short-Term Borrowings 42.90 32.80 76.80 Total Current Liabilities 1261.20 1452.50 1566.70 + Long-Term Borrowings 51.4 65.30 88.60 Total Long-Term Liabilities 51.40 65.30 88.60 Total Liabilities 1312.60 1517.80 1655.40 + Share Capital 363.76 432.64 423.35 + Retained Earnings 734.04 837.49 922.60 Total Equity 1097.80 1270.12 1345.95 Total Liabilities & Equity 2410.39 2787.97 3001.32 Cash Flow Information (inflows in positive & outflows in negative) In Millions of SAUD FY 2014 FY 2015 FY 2016 Capital Expenditures 55.43 -82.85 - 103.79 Disposal of Fixed Assets 0.00 0.00 17.20 Additional Long Term Debt 3.13 33.32 33.30 Cash Dividends Paid - Total -146.78 -153.11 -158.35 Reduction In Long Term Debt -1.48 -17.43 - 10.00 FY 2014 2,212.40 1,818.00 394.40 FY 2015 FY 2016 2,367.40 2,640.30 2,009.90 2,278.20 357.60 362.20 86.99 94.44 90.85 53.80 66.10 54.10 3.10 3.50 1.40 427.95 387.39 389.14 - 29.50 24.30 28.10 15.00 -5.10 -3.80 3.50 3.10 -1.40 379.95 116.86 In Millions of $AUD Revenue -COGS Gross Profit + Other Operating Revenue - Depreciation & Amortization - Other Operating Expenses EBIT - Interest Expense - Foreign Exchange Losses (Gains) - Net Non-Operating Losses (Gains) Pre-tax Income - Income Tax Expense Net Income (loss) In Millions of $AUD Assets + Cash & Near Cash Items + Short-Term Investments + Accounts Receivable + Inventories Total Current Assets + Net Fixed Assets + Gross Fixed Assets - Accumulated Depreciation + Other Long-Term Assets Total Long-Term Assets Total Assets 365.09 109.74 255.34 FY 2015 366.24 100.49 265.75 FY 2016 263.09 FY 2014 1,261.70 1,378.00 1,316.00 204.50 41.20 75.70 537.60 635.50 672.20 47 63.6 70.5 2,152.80 1,887.50 161.00 2,263.20 216.30 196.30 383.10 465.60 533.30 222.10 269.30 317.00 361.90 438.90 521.80 522.90 635.20 738.10 2,410.40 2,788.00 3,001.30 Liabilities & Shareholders' Equity + Accounts Payable 1040.5 1056.2 1487.1 + Short-Term Borrowings 42.90 32.80 76.80 Total Current Liabilities 1261.20 1452.50 1566.70 + Long-Term Borrowings 51.4 65.30 88.60 Total Long-Term Liabilities 51.40 65.30 88.60 Total Liabilities 1312.60 1517.80 1655.40 + Share Capital 363.76 432.64 423.35 + Retained Earnings 734.04 837.49 922.60 Total Equity 1097.80 1270.12 1345.95 Total Liabilities & Equity 2410.39 2787.97 3001.32 Cash Flow Information (inflows in positive & outflows in negative) In Millions of SAUD FY 2014 FY 2015 FY 2016 Capital Expenditures 55.43 -82.85 - 103.79 Disposal of Fixed Assets 0.00 0.00 17.20 Additional Long Term Debt 3.13 33.32 33.30 Cash Dividends Paid - Total -146.78 -153.11 -158.35 Reduction In Long Term Debt -1.48 -17.43 - 10.00