1. INDUSTRIAC.H. Robinson Worldwide is a third-party logistics “multimodal transportation and logistics solutions provider.” (Chrobinson.com) CH Robinson Worldwide belongs to the Industrial, Air Freight and Logistics subsector. Jim Corridore in the Standards and Poors subsector review says there is “a positive fundamental outlook for the airline and logistics sector over the next 12 months.” (Standardabpoors.com) Katie Lally suggests that 2014 “should still be a profitable year for transportation” despite the economy not fully recovering from the recession. (kcsmartport.com) I would say that 2014 forecasts for the transportation and logistics subsector in the United States and globally differ. The American recession has hit the world economy. Transportation service as a product itself depends on the growth of sales and production of goods. Globally and nationally, the economy recovers at a different speed. Transportation and logistics companies around the world have a better chance of increasing their revenues. As Corridore mentioned in his subsector analysis, “the volume of activity from Asia, and particularly China, should serve as a natural support to air cargo volumes over the next two years.” (Standardabpoors.com) Transport and logistics companies will always be present on the market: every product will have to be transported from the production line to the point of sale. The biggest concern is the growth of retail and manufacturing, because the transportation and logistics sector is highly dependent on it. In his article, Lally states that “the Washington-based global agency forecasts that the growth of the world economy in 2014 will be only 2.4%, in the middle of the document……96 – 0.0576)E (Rs ) = 5.149 or 5.15% Therefore, “k” equals 5.15%. The value of the company can be calculated using the PVGO: However, there is a problem with the formula because I found that in my case, g > k. To find the g rate, I was using the formula PEG ratio = (P/E)/g. Using data from Yahoo Finance, I found P/E=15.93 and PEG ratio=2.00. Therefore, g = (P/Ettm)/PEG ratio = 15.93 / 2 = 7.965% One of the explanations for g>k is that the formula we are using for the calculations is too simplistic and does not include multiple factors. In my opinion According to calculations, the sustainable P/E ratio for the company is negative 1.51.P/E = (1-b)/(k-ROE*b) = - 1.5083. If it were a smaller but positive number, I would say the company has no chance of growing. A negative P/E means that for some reason a company is losing money. (Investopedia.com)Appendix 1