As we can see from the above the last trading price is 243.75P and the last closing is 244.3p. This is quite low in comparison to the highest price attained by the firm’s stock in the last 1 yr. in comparison to the 52 week high the current trading price is being trading at 21.875% lower. This is an extreme fluctuation on the part of the market sentiment and it seems the financial fortunes of the firm are swinging too much from adverse market conditions in the past. The 52 week low is 164.8 which are almost 47% lower than the high point the stock has achieved. This is an extreme price swing in the market and not pointing towards a good and stable financial performance (Bodie, 2012).
The EPS of the Tesco Plc have increased in 2014 by 23% year on year but the dividend for the year has remained the same. Dividend yield have shown a slight increase in the level of its dividend yield from 4% to 4.4% as the stock prices has reduced considerably in the last quarter. Even though the operational profits have shown tremendous growth prospects, there have been various reports regarding misreporting of supplier discounts which the company management has used to inflate the revenue for a few years (ATRILL & EDDIE, 2012). Because of these adverse reports and then an internal enquiry by the company auditor and international audit firm Deloitte which asserted that the claim was actually correct – the share prices tumbled. It seems that Tesco is struggling to deal with the crisis and stock markets took into consideration these problems and prices went down by over 47% in the last 1 year. But knowing Tesco and its track record this might be a good sign to invest since Tesco is a long term bet. As the Prices are low – it is advisable to invest keeping in mind a long term prospect.