Inapa : Investimentos, Participações e Gestão, S.A. : equity valuation

• Autor(a) principal: Martins, Vasco Menezes
• Data de Publicação: 2011
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/7755

The purpose of this thesis was to conduct an evaluation of an Iberian listed company using all the knowledge acquired in the Finance Master. The company chosen was Inapa, a Portuguese paper distributor. This choice was neither random nor indifferent. Several reasons motivated it. First, Inapa had recently entered the PSI 20 Index - the group of twenty largest listed companies in the Portuguese Stock Exchange. Second, with 93% of its turnover outside of Portugal, Inapa is one of the most internationalized Portuguese companies and one of the top European paper merchants. Finally, although the company seemed in good track it had a delicate financial equilibrium, given its highly leveraged situation. All these factors added up to an interesting valuation challenge. Inapa’s equity value assessment was performed combining academic theory with best valuation practices. Throughout the valuation process several interviews with corporate analysts and managers were conducted, forming criteria to establish the necessary assumptions. In the end, the Adjusted Present Value method was used. Taking into account the company’s characteristics this methodology was considered the most appropriate one. At the end, a final value per share of 0,34€ was computed, translated into a Hold recommendation.