Ball HOLD Recommendation 2013.06.06.

Ball Corporation (BLL), together with its subsidiaries, supplies metal packaging products to the beverage, food, personal care, and household products industries in the United States and internationally. It operates in four segments: Metal beverage packaging, Americas & Asia; Metal beverage packaging, Europe; Metal food & household products packaging, Americas; and Aerospace & technologies.  Ball Corporation was founded in 1880 and is headquartered in Broomfield, Colorado. BLL employs 15000 full time employees.

Today BLL trades for $42.74. DCF and Graham valuations give mixed results. DCF valuation model proposes that fair value for $BLL is at $37.44 while Graham valuation model proposes that fair value for $BLL is at 78.40. In case of DCF is way below present price but Graham value is more than twice higher than present price. If we take the average then it may seem that BLL is fairly priced.

So the overall recommendation for BLLis HOLD. For it to become a buy recommendation I guess that BLL should improve its performance as well as price of BLL should go down significantly.

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