Editing Shoprite Holdings Limited (section)

== Potential Limitations ==
The report suggests that Shoprite is undervalued and is thus a buy investment recommendation. However, this recommendation is based on a variety of assumptions. For instance, when forecasting for the DCF valuation, revenue was grown at the 3-year historical average growth rate. A historic growth rate may not be ideal (particularly one based on COVID years) and instead a growth rate based on a combination of food inflation and GDP could be more appropriate. There are many of these assumptions related to the forecasted line items and discount rates used when conducting the DCF valuation. It is also worth noting that the calculations, results and ratios are based on Shoprite’s audited 2022 financial report and therefore may have some limitations in their 2023 predictive ability and analysis.
__INDEX__