Browsing by Author "Luz, Mafalda Rodrigues de Carvalho da"
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- Equity valuation : Fresenius SE & Co. KGaAPublication . Luz, Mafalda Rodrigues de Carvalho da; Martins, José Carlos TudelaThe inseparability between healthcare and the economy became evident with the emergence of COVID-19. Words as uncertainty, pandemic, lockdown, have become part of our everyday life, directly affecting the healthcare facilities and services industry, which is adapting to a new reality whose endpoint is the epidemicity or endemicity of this virus. Therefore, this Dissertation aims to analyse the value of Fresenius SE & Co. KGaA based on different valuation models in order to form an investment decision. Factors such as the unfolding of vaccination rates, the appearance of new variants, the impact of supply-chains disruptions, and the general increase in prices were considered. Thus, the valuation was based on three methods: DCF, relative sum-of-the-parts valuation, and a relative valuation using a single peer group for Fresenius as a whole. Considering the different macroeconomic and industry-specific factors, and attributing the same preponderance to the different methods used, the final target price of the company is €41.73, which translates into an upside potential of 17.9% against the closing price of €35.40 on 31st December, 2021, thus reflecting a buy recommendation. The sensitivity analysis, scenario analysis and Monte Carlo simulation corroborated these values, indicating a greater potential upside. Finally, a comparison of the results with the valuation methods followed by Credit Suisse and Morgan Stanley, and correspondent target prices, was carried out.