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.


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