LVMH company 4000 words
The report should deliver:
1) a discounted cash flow (DCF) valuation of the stock (common equity) in the company by
• identifying the key assumptions for the DCF analysis,
• presenting relevant cash flow tables and applied valuation formulas, and
• estimating how sensitive the value estimates are to changes in the key assumptions,
2) a relative valuation of the stock (common equity) in the company by
• preparing a list of comparable (peer) companies, using criteria that are justified to be appropriate,
• choosing a multiple that will be used in comparing companies across the peer group,
• evaluating the company against its peers using the chosen multiple,
3) a final value estimate and investment recommendation by
• considering the values obtained from discounted cash flow and relative valuation models and reconciling potential differences between the two, and
• making a final investment recommendation on whether to buy or sell the stock of the company.