1. INDUSTRIEC.H. Robinson Worldwide is a “third-party provider of multimodal transportation services and logistics solutions.” (Chrobinson.com) CH Robinson Worldwide belongs to the Industrial, Air Cargo and Logistics sub-industry. Jim Corridore, writing in Standards and Poors Sub-Industry, says there is a "positive fundamental outlook for the air cargo and logistics sector over the next 12 months." (Standardabpoors.com) Katie Lally suggests that 2014 "should remain a profitable year for transportation" even if the economy has not fully recovered from the recession. (kcsmartport.com) I would say that the 2014 forecasts for the transportation and logistics sub-industry in the United States and around the world differ. The American recession has affected the global economy. Transportation service as a product itself depends on the growth of sales and production of goods. Globally and domestically, the economy is recovering at a different pace. Transportation and logistics companies with a global presence have a greater chance of increasing revenue. As Corridore mentions in its review of the sub-industry, “the volume of activity from Asia, and in particular China, is expected to provide a natural support to air cargo volumes over the next two years.” (Standardabpoors.com) Transportation and logistics companies will always be present in the market: any given product must be transported from the production line to the retail point. The biggest concern is the growth of retail and manufacturing, as the transportation and logistics sector relies heavily on it. In his article, Lally mentions that "the Washington-based global agency forecasts that the global economy will grow only 2.4 percent in 2014, a low rate...... middle of paper......96 – 0.0576)E (Rs) = 5.149 or 5.15%Therefore, “k” is equal to 5.15%.The value of the company can be calculated at PVGO help: However, there is a problem with the formula as I found that in my case, g > k. To find the g rate, I used the formula PEG ratio = (P/E)/g. Using data from Yahoo Finance, I found P/E=15.93 and PEG ratio=2.00. Therefore, ratio g = (P/Ettm)/PEG = 15.93 / 2 = 7.965%. One explanation for g>k is that the formula we use for calculations is too simplistic and does not include more factors. According to the calculations, the company's sustainable P/E ratio is negative 1.51. P/E = (1-b)/(k-ROE*b) = - 1.5083. If it were a smaller but positive number, I could say the company has no room for growth. A negative P/E means that, for whatever reason, a company is losing money. (Investopedia.com)Appendix 1