Equity valuation Carlsberg A/S

• Autor(a) principal: Arnold, Karina Theresia
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/29287
• topic: Beer industry; Brewing industry; Beverage industry; Equity research; Firm valuation; Carlsberg A/S; Indústria da cerveja; Indústria das bebidas; Relatório de pesquisa; Avaliação de empresas; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

In this dissertation, the share price of Carlsberg A/S, as of 28th February 2019, was examined to identify whether it is under- or overvalued or properly priced. First, the different valuation models were investigated, concluding that a WACC-based DCF valuation is the most suitable approach to obtain the fair value of Carlsberg. Supplementary, a relative valuation was performed to verify the DCF results. It was found that through the implementation of a new strategy, Carlsberg is able to adapt to challenges in the industry and to preserve its market position. The main valuation methodology returned a target price of DKK 826.5. The similarity to the market price of DKK 794.6 at the valuation date resulted in a hold recommendation for Carlsberg’s stock. To assess the effect of the key valuation input such as WACC and the perpetuity growth rate on the share price, the performed sensitivity showed that even small changes cause significant changes in the share price. Lastly, the valuation results were compared with the equity research report of ODDO BHF. Despite different assumptions and valuation parameters the target prices are fairly similar.