Kia Corporation´s equity valuation
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/35836 |
Resumo: | This dissertation presents an equity valuation of a South Korean automotive company, Kia Corporation. The company has recently gone through a brand relaunch and has started to implement its new mid-to long term strategy, called ‘Plan S’, which aims to establish a leadership position in the automotive industry. The goal of the valuation is to determine Kia’s fair share price and provide a buy, hold, or sell recommendation as of the 30th of April 2021. To justify the assumptions, an overview of Kia Corporation is presented, as well as a sector outlook and a macroeconomic outlook, including the company’s main risks and opportunities. All considered, Kia has a huge potential, however, it is not yet reflected in its share price. In the valuation process, three different methods are applied: The Discounted Cash Flow Model (DCF), the Dividend Discount Model (DDM), and the Relative Valuation. To arrive at the final target share price, a weighted average is used, with 90% allocated to DCF, 0% to DDM, and 10% to Relative Valuation. As a result, the fair share price is 120,455 KRW which shows a 56% upside compared to its current share price of 77,000 KRW. Consequently, my recommendation for Kia Corporation is a strong buy. |
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Kia Corporation´s equity valuationEquity valuationDiscounted cash flow modelRelative valuationDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis dissertation presents an equity valuation of a South Korean automotive company, Kia Corporation. The company has recently gone through a brand relaunch and has started to implement its new mid-to long term strategy, called ‘Plan S’, which aims to establish a leadership position in the automotive industry. The goal of the valuation is to determine Kia’s fair share price and provide a buy, hold, or sell recommendation as of the 30th of April 2021. To justify the assumptions, an overview of Kia Corporation is presented, as well as a sector outlook and a macroeconomic outlook, including the company’s main risks and opportunities. All considered, Kia has a huge potential, however, it is not yet reflected in its share price. In the valuation process, three different methods are applied: The Discounted Cash Flow Model (DCF), the Dividend Discount Model (DDM), and the Relative Valuation. To arrive at the final target share price, a weighted average is used, with 90% allocated to DCF, 0% to DDM, and 10% to Relative Valuation. As a result, the fair share price is 120,455 KRW which shows a 56% upside compared to its current share price of 77,000 KRW. Consequently, my recommendation for Kia Corporation is a strong buy.Esta dissertação apresenta uma avaliação patrimonial de uma empresa automóvel sul-coreana, Kia Corporation. A empresa passou recentemente por um relançamento da marca e começou a implementar a sua nova estratégia a médio e longo prazo, denominada "Plano S", que visa estabelecer uma posição de liderança na indústria automóvel. O objetivo da avaliação é determinar o preço justo das ações da Kia e fornecer uma recomendação de compra, detenção, ou venda a partir de 30 de abril de 2021. Para justificar os pressupostos, é apresentada uma visão geral da Kia Corporation, bem como uma perspetiva sectorial e uma perspetiva macroeconómica, incluindo os principais riscos e oportunidades da empresa. Tudo considerado, a Kia tem um enorme potencial, mas ainda não está refletido no preço das suas ações. No processo de avaliação, são aplicados três métodos diferentes: O Modelo de Fluxo de Caixa Descontado (DCF), o Modelo de Desconto de Dividendos (DDM), e a Avaliação Relativa. Para atingir o preço alvo final das ações é utilizada uma média ponderada com uma atribuição de 90% ao DCF, 0% ao DDM, e 10% à Avaliação Relativa. Como resultado, o preço justo das ações é de 120.455 KRW, o que mostra uma vantagem de 56% em relação ao seu preço atual de 77.000 KRW. Consequentemente, a minha recomendação para a Kia Corporation é uma compra forte.Assunção, António Luís Traça Borges deMartins, José Carlos TudelaVeritati - Repositório Institucional da Universidade Católica PortuguesaVörös, Miklós Sándor2021-11-08T09:09:09Z2021-06-302021-062021-06-30T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/35836TID:202751813enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:41:21Zoai:repositorio.ucp.pt:10400.14/35836Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:29:06.428889Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Kia Corporation´s equity valuation |
title |
Kia Corporation´s equity valuation |
spellingShingle |
Kia Corporation´s equity valuation Vörös, Miklós Sándor Equity valuation Discounted cash flow model Relative valuation Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Kia Corporation´s equity valuation |
title_full |
Kia Corporation´s equity valuation |
title_fullStr |
Kia Corporation´s equity valuation |
title_full_unstemmed |
Kia Corporation´s equity valuation |
title_sort |
Kia Corporation´s equity valuation |
author |
Vörös, Miklós Sándor |
author_facet |
Vörös, Miklós Sándor |
author_role |
author |
dc.contributor.none.fl_str_mv |
Assunção, António Luís Traça Borges de Martins, José Carlos Tudela Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Vörös, Miklós Sándor |
dc.subject.por.fl_str_mv |
Equity valuation Discounted cash flow model Relative valuation Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Equity valuation Discounted cash flow model Relative valuation Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This dissertation presents an equity valuation of a South Korean automotive company, Kia Corporation. The company has recently gone through a brand relaunch and has started to implement its new mid-to long term strategy, called ‘Plan S’, which aims to establish a leadership position in the automotive industry. The goal of the valuation is to determine Kia’s fair share price and provide a buy, hold, or sell recommendation as of the 30th of April 2021. To justify the assumptions, an overview of Kia Corporation is presented, as well as a sector outlook and a macroeconomic outlook, including the company’s main risks and opportunities. All considered, Kia has a huge potential, however, it is not yet reflected in its share price. In the valuation process, three different methods are applied: The Discounted Cash Flow Model (DCF), the Dividend Discount Model (DDM), and the Relative Valuation. To arrive at the final target share price, a weighted average is used, with 90% allocated to DCF, 0% to DDM, and 10% to Relative Valuation. As a result, the fair share price is 120,455 KRW which shows a 56% upside compared to its current share price of 77,000 KRW. Consequently, my recommendation for Kia Corporation is a strong buy. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-11-08T09:09:09Z 2021-06-30 2021-06 2021-06-30T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
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masterThesis |
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publishedVersion |
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http://hdl.handle.net/10400.14/35836 TID:202751813 |
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http://hdl.handle.net/10400.14/35836 |
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TID:202751813 |
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eng |
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eng |
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openAccess |
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application/pdf |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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