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DP World Company Introduction DP World is a primary operator of marine terminals and container in the world. In 2011, the company generated revenue of $2,978 million along with an EBITDA of $1,307. Currently, the company is operating in 35 different countries.
DP World operates in Europe, Middle East, Africa, Asia Pacific, Indian sub-continent, Australia and in America. The company has taken initiative in the process of reducing frequency of lost time injuries and has been successful in bring down the value of the same to 7.6 in 2011 from 10.1 in 2009. The company also focuses on the internal control of the company related to the organizational structure of the company, code of conduct, whistle blowing policy, risk management and performance, etc. Pensions and post retirement benefits are provided to the employees of the company, which shows that the company takes enough care of its employees even after the termination of employment (“DP World 2011 Annual Report” 1-10). Reason for DP stock being overvalued The stock of a company is said to be overvalued if the current price of the stocks of the company is greater than stock’s intrinsic value. Here the price earnings of the stock are primarily being considered in order to explain the reasons behind the overvaluation of the stocks of DP World. The price earnings ratio of the company has been relatively high in comparison to the historical price earnings ratio of the company, which is why the stock of DP World is considered to be overvalued. The growth in the global container traffic has risen by three times the rate at which the world used to trade in the past decade. ...
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