Percorrer por autor "Franchi, Corrado"
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- Equity valuation : Kellogg CompanyPublication . Franchi, Corrado; Martins, José Carlos TudelaThis dissertation aims to determine the fair value per share of Kellogg Company, a leading American manufacturer of breakfast cereals and packaged food, to issue a buy, hold or sell recommendation on the basis of the investment thesis emerging from the valuation. Therefore, this dissertation represents an attempt to answer the underlying research question of whether Kellogg’s share price reflects the fair value of the company and embeds an upside or downside potential for investors as of 30th of May 2020. The valuation of the Michigan-based multinational company was performed by first investigating different valuation models and presenting an overview of the main techniques. After a comprehensive and detailed analysis of the industry, the competition and the company’s past and future strategy, it was found that the recent company’s restructuring plan has set the ground for potential rebound after difficult years and should be able to face the future of a declining industry with renewed optimism, based on a solid brand portfolio. The DCF valuation was implemented as the most suitable tool for the investigation, while the supplemental relative valuation was performed as soundness test along with a sensitivity analysis. The returned target price of US $ 82.63 was compared with the equity research report by Credit Suisse, aligned with the BUY recommendation, due to an observed upside potential of 26% over the current share price of US $ 65.31.