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Telstra investment appraisal

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Telstra investment appraisal
Jean David Nicholas Poussin

712 SFI Strategic Financial Issues

Table of Contents
EXECUTIVE SUMMARY .................................................................................................................... 2
1.0 INTRODUCTION TO TELSTRA.................................................................................................... 3
2.0 RATIOS ANALYSIS ....................................................................................................................... 4
3.0 LIMITATIONS OF RATIO ANALYSIS ....................................................................................... 15
4.0 SWOT ANALYSIS ........................................................................................................................ 15
5.0 RECOMMENDATIONS ................................................................................................................ 17
6.0 CONCLUSION ............................................................................................................................... 18
7.0 REFFERENCE LIST ...................................................................................................................... 20
8.0 APPENDIX ..................................................................................................................................... 22

1
Student Number

A121772

Jean David Nicholas Poussin

712 SFI Strategic Financial Issues

EXECUTIVE SUMMARY
Established in Melbourne in 1975 Telstra has been the pioneer of the Australian telecommunication industry. In 2011 after nearly 36 years of business, Telstra due to its valuable expertise is still leading the market with approximately 50% market share.
A bit of history relates that in 1997 Telstra was listed on the Australian Stock Exchange when the government sold 1/3 of its shares in Telstra. Soon after; in 1999 the Australian
Government sold an additional 16% of their shares. Up to 2006 the Australian Government

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