airbus

VALUATION PROJECT - SUGGESTED TOPIC

Student can choose to do a valuation project for their dissertation.

Students are expected to produce an investment recommendation report about a listed company

(please see below).

VALUING A LISTED COMPANY

Students have to expose their investment case about the selected company, supported in their

valuation analysis. The investment recommendation can be to BUY (if valuation higher than

market price) or to SELL (if valuation lower than market price) the selected company. The

consistency and quality of the investment case and the supporting valuation exercise, both

properly explained, are the topics to be evaluated. The investment report is self-contained, i.e.

there are no additional elements to be evaluated.

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.

Students are expected to produce an investment recommendation report for one of the

companies below (max 25 students for company):

1. Netflix https://ir.netflix.com/ir-overview/profile/default.aspx

2. Wynn Resorts

https://wynnresortslimited.gcs-web.com/investor-relations

3. Manchester United https://ir.manutd.com

4. Costco Wholesale Corp.

http://investor.costco.com 5. Adidas

https://www.adidas-group.com/en/investors/overview/ 6. BASF:

https://www.basf.com/en/company/investor-relations.html 7. Carrefour:

http://www.carrefour.com/content/finance 8. Danone:

https://www.danone.com/investor-relations.html

9. Inditex: https://www.inditex.com/en/investors/investor-relations/share-capital

10. Amazon https://ir.aboutamazon.com/

11. Acerinox http://www.acerinox.com/en/accionistas-inversores/

12. Saint Gobain https://www.saint-gobain.com/en/finance

13. Airbus https://www.airbus.com/investors.html

14. Diageo https://www.diageo.com/en/investors/

15. Vodafone https://investors.vodafone.com/investor-relations

16. Intercontinental Hotels https://www.ihgplc.com/en/investors

17. Unilever https://www.unilever.com/

18. Swatch https://www.swatchgroup.com/en/investors-space

19. Nestle

https://www.nestle.com/investors

20. Pirelli https://corporate.pirelli.com/corporate/en-ww/investors/investors

21. Heineken https://www.theheinekencompany.com/Investors

22. Arcelor Mittal https://corporate.arcelormittal.com/investors

23. Juventus https://www.juventus.com/en/club/investor-relations/

24. LVMH https://www.lvmh.com/investors/

25. Continental https://www.continental.com/en/investors/overview

26. SAP https://www.sap.com/corporate/en/investors.html

27. British American Tobacco https://www.bat.com/group/sites/uk__9d9kcy.nsf/vwPagesWebLive/DO52ADAA

28. Vestas https://www.vestas.com/en/investor