Ryanair Holdings plc : Equity Research

• Autor(a) principal: Costa, Manuel Maria Nunes da
• Data de Publicação: 2017
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/22202
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The aim of this dissertation is to attain the true value of Ryanair’s equity fair value. To do so were selected and performed proved methods and tools, from the existing literature, namely the Discounted Cash Flows and Relative valuation approaches. Initially, the value per share on March 31, 2016 was 14.17 €. Concerning the DCF/WACC approach, the one year price target estimation was 18.16 €. As for Relative valuation, the price target reached 9.98 € and 12.83 €, considering the EV/EBITDA and P/E forward looking multiples, accordingly. Furthermore, a sensitivity analysis was performed in order to study the impact on the previously projected forecasts, resulting from shifts on key variables and assumptions, such as the WACC rate or fuel expenses. To conclude, a comparison between this thesis’s conclusions and the ones reached by J.P Morgan were analyzed. Both final outcomes, despite its asymmetries, led to an “Overweight” conclusion, in regard to a price target end date on 31 March, 2017. The dissertation recommended price target was 16.47 €, while the investment bank estimation was 16.53 €.