UNLVF - Unilever: Time For A Premium Valuation
Introduction
In this article, I will discuss why I believe a potential spin-off of Unilever's (UL) food division can create value for shareholders, and I will elaborate why there is a serious possibility that it will occur in the following years.
Valuation
Over the last few years, Unilever's valuation has been relatively cheap compared to its competitors. Currently, its price-to-sales ratio is significantly lower than its peers, and its EV-to-EBITDA ratio at 14.71 is also the lowest amongst those same contestants. Yet, Unilever's operating margin is quite powerful. When looking at the underlying