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Sensitivity Analysis Recommendations The sensitivity analysis has been conducted using the Abnormal Operating Earnings model (AOI) using Blackmores share price as of 30th of June
Sensitivity Analysis Recommendations The sensitivity analysis has been conducted using the Abnormal Operating Earnings model (AOI) using Blackmores share price as of 30th of June 2016; $131.39. The sensitivity analysis was conducted over 6 different variable listed in the table below. All but a few of the outcomes led to the conclusion that Blackmores share price is currently undervalued and should therefore a "Buy" approach should be followed. As is delivered below, the current market share price of Blackmores is significantly lower than the forecasts this report puts forward. This indicates that Blackmores Ltd's shares are currently understated. This has possibly been caused by external factors, such as concern over Chinese policy affecting Blackmores Sales. These concerns have yet to been justified and positive investments may be made if shares were to be purchased now
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