Equity Valuation Research Nestlé S.A.

• Autor(a) principal: Pereira, Sebastião d'Orey Colares
• Data de Publicação: 2015
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/20075
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This dissertation focuses on the Equity Valuation of Nestlé S.A., the world's biggest food company. In a period of economic unpredictability, Nestlé has been able to continue its trend of sustainable growth, even facing challenges such as the currency volatility, which is particularly relevant to a multinational Swiss company that reports in its national currency, the Swiss Franc. The main objective is to provide an investment recommendation, based on the estimated equity value of the company. Throughout the dissertation, all the essential topics to come up with an accurate valuation are addressed, namely: 1) different valuation approaches, based on state of the art articles; 2) company overview; 3) external environment overview; 4) forecast assumptions; 5) comparison between this dissertation analysis and the one of the J.P. Morgan analysts. A FCFF valuation approach was chosen, along with the relative valuation approach, this one to complement and test the accuracy of the first approach. Finally, a Buy recommendation is given, as the company is valued in CHF 97.64 per share.