Equity valuation of the BMW Group

• Autor(a) principal: Silva, Sara Raquel Pereira
• Data de Publicação: 2013
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/15607
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The present dissertation aims to value the BMW group, which currently owns three different and physically powerful brands: BMW, Mini and Rolls Royce. There is still much deliberation among analysts about which valuation method is the most accurate, but almost all investors agree that the Discounted Cash Flow is one of the best models to use. Therefore, the BMW group will be valued with this method, as well as with a relative valuation which is extremely important fundamentally as a complementary tool for the DCF. The Dividend Discount Model was also used in order to value the price per share based on the present value of future dividends. The results obtained with these methodologies will be compared with the ones of an investment bank – JP Morgan, published in 2013. This has been done in order to understand the main differences on the valuation and to provide a way of checking its strength. Therefore, given the exceptional period that the BMW group is undergoing, we find that the current value of BMW is in fact undervalued and that there is a high probability that the current share price of the company will rise.