Vista Alegre Equity Valuation

• Main Author: Pais, Vanessa
• Format: Dissertation
• Language: English
• Published: ProQuest Dissertations & Theses 01-01-2023
• Subjects: Accounting; Balance sheets; Bankruptcy; Book value; Capital assets; Capital expenditures; Capital structure; Debt financing; Discount rates; Discounted cash flow; Dividends; Earnings per share; Economics; Epidemiology; Equity; Fair value; Finance; Growth rate; Industry analysis; Interest costs; Investments; Macroeconomics; Management; Pandemics; Portfolio management; Present value; Tax rates; Valuation methods
• ISBN: 9798381913651

The objective of this dissertation isto provide a fair share price for the company of Vista Alegre. The Vista Alegre was founded in 1824 and is the biggest ceramic producer in Portugal being known worldwide by the quality and design of its pieces. To attain the share price two different methodologies are used, the DCF method and the relative valuation, with the last being added as a methodology to verify the coherence of the DCF provided price. Within the DCF, the model used is the FCFF and in the relative valuation is the P/E and EV/EBITDA. At the end of this dissertation, the concluding share price of the company is of 1,34 euros, fully provided by the DCF model.As of 31 of march, the market share price of Vista Alegre is 0,81 euros. Nonetheless, the fair value of the share price is 1,34 euros according to the valuation provided in this dissertation, meaning that, currently, the price is undervalued and is expected that, assuming market efficiency, the market price will converge to the fair price providing a BUY recommendation. Furthermore, the recommendation and share price are compared to a report provided by the Marketscreener, that presents a fair value price of 1,40 euros and a BUY recommendation being aligned with the recommendation provided by this dissertation.