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Abstract(s)
The main objective of Equity Valuation is to measure the value of a company based on its current assets and market position. The use of Equity Valuations help investors to make most informed investment decisions taking into account the true value of a company at any given time and its expected performance in the future. Notwithstanding, a good valuation must be based on consistent and solid assumptions in order to provide the most reliable illustration of the company business reality. In this sense, a proper equity valuation analysis needs to address all the critical endogenous and exogenous factors that influence the company business. The chosen valuation approach will also determine the accuracy of the final results.
This dissertation focus on the Equity Valuation of Corticeira Amorim SGPS SA, the world’s biggest cork-transforming company and one of the most international Portuguese companies. In a period of unfavorable economic context, Corticeira Amorim has been able to buck the negative trend of most Portuguese companies based on its sustainable growth. Thereby, the company seems to be an interesting investment target to investors considering the recent and future optimistic perspectives of its business. Hereupon, the objective of this dissertation is to provide an investment recommendation based on the estimated market value of Corticeira Amorim. Throughout this dissertation, all the determinant topics that support the valuation results are discussed, namely: different valuation approaches, industry and company overviews and forecast assumptions. The final topic focus on the comparison between BPI bank and this dissertation analyzes, discussing the differences on both valuations.