What's Woolworths worth? - Part 1

In this three-part series, we consider whether Woolworths can avoid the disasters unfolding for its UK peers, before arriving at a valuation.

He gets most of the credit, but it probably didn’t take a genius like Isaac Newton to tell people that what goes up must come down. In finance, the proposition typically gets expressed as ‘reversion to the mean’, which sounds a lot grander but comes to much the same thing; and it’s fair to say that supermarkets in the UK have been doing a lot of it lately.

The legendary Tesco has seen the operating margin at its UK business fall from 6.1% in 2012 to 2.1% in the six months to August – and it’s forecast to get worse before it gets better.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles