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Some analyst's report reads:
Price: 312p/US$8.01 (ADR)


First, what is the actual price he's referring to?
Second, what is ADR and the ADR Ratio (he referenced it on several occasions)?


Thanks!
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No. of Recommendations: 1
Some analyst's report reads:
Price: 312p/US$8.01 (ADR)


First, what is the actual price he's referring to?
Second, what is ADR and the ADR Ratio (he referenced it on several occasions)?


Hi DariaSofi!

I've noticed your question here has 'languished' for some time today and I'm a little surprised no one has replied!


I first thought; why would a Sr. Financial Analyst ask for an answer that Some analyst's report has given? Then I noticed from your Profile you are an BBA, MBA -present under School(s) Attended so I 'presume' you are a student presently... is this correct?

Job: Sr. Financial Analyst
School(s) Attended: Georgia State University, BBA, MBA -present
Investing Style: Mutual Funds


Anyway, back to your quandary. I don't know where the 312p/US$8.01 (ADR) price came from or for what date. I do understand what ADR means (American Depositary Receipt) which you can find here:

http://www.investopedia.com/terms/a/adr.asp

A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.

This is an excellent way to buy shares in a foreign company while realizing any dividends and capital gains in U.S. dollars. However, ADRs do not eliminate the currency and economic risks for the underlying shares in another country. For example, dividend payments in euros would be converted to U.S. dollars, net of conversion expenses and foreign taxes and in accordance with the deposit agreement. ADRs are listed on either the NYSE, AMEX or Nasdaq.


As for the actual values I 'presume' the 312p to be GBP or United Kingdom Pounds converted to United States Dollars, however when I used a Currency Converter at http://www.xe.com/ucc/convert.cgi it gave me a different value below.


Live rates at 2008.05.22 23:30:36 UTC
3.12 GBP = 6.17823 USD
United Kingdom Pounds United States Dollars
1 GBP = 1.98020 USD 1 USD = 0.504999 GBP



Does this help you understand what you've asked above?

Regards;

~hildy
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Thanks Hildy. I have figured this out since posting this question.

To answer the personal question you asked me - my analytical background has always been in the gray area between ops and finance. Only recently have I dived into stock valuation and FCF analysis along with all decisions that go into what to do with the FCF.

Thanks again for the reply!
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