Date of Award

Spring 5-15-2020

Document Type

Project (696 or 796 registration)

Degree Name

Master of Science in Accounting & Finance

Department

Graduate Studies

Committee Chair

Mohamed Elbannan

Abstract

Otter Tail Corporation is a holding company headquartered in Fergus Falls, MN with a business history of over 100 years. Their largest and longest-standing subsidiary is Otter Tail Power Company, but they also own four other subsidiaries branching out into the manufacturing and plastics industries as well. To better understand the current financial environment surrounding Otter Tail Corporation, I have gathered pertinent quantitative and qualitative data on the company from 2014-2018. As part of this research, I have also gathered the same data for another company to compare to within the same industry, also headquartered in the Midwest, and being similar in size. The company chosen for this benchmark process is Black Hills Corporation out of South Dakota. I used all of these findings to draw conclusions and make projections looking ahead to help provide the best recommendation to future investors.

I developed a valuation for my main corporation and was able to compare it to that of the current stock price as of the same period. From this, I found that the current selling price of the stock of Otter Tail Corporation was $48.64 as of 12/31/2018. My valuation produced an estimated value of the stock as of the same date to be $33.41. This shows the stock of Otter Tail Corporation to be currently traded at a price that is overvalued, and therefore I would recommend investors to sell their stock in Otter Tail Corporation.

Share

COinS