Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry

Detalhes bibliográficos
Autor(a) principal: Tita, David Filipe de Sousa
Data de Publicação: 2023
Tipo de documento: Dissertação
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/28235
Resumo: Mestrado Bolonha em Finanças
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spelling Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industryEquity ResearchValuationRetailLiquidity DiscountMestrado Bolonha em FinançasThe present document consists of an Equity Research report on Jerónimo Martins SGPS, S.A. (JMT.LS). This report was used for the local Portuguese CFA Institute Research Challenge in which the team obtained the 1st place. Please note that this report contains solely public information until the 13/01/2023. Beyond the research presented during the competition, this report contains an additional analysis into the implied upside of the forecasted price of the company’s stock. That chapter intends to understand whether the difference between the forecasted price and the actual price of the stock is due to a possible lack of trading liquidity. The analysis is conducted by replicating the paper The pricing discount for limited liquidity: evidence from SWX Swiss Exchange and the Nasdaq, (Loderer and Roth 2005). The model of the paper is applied to historical data ranging for 10 years, with a data set comprised of Food Retail and Distribution Companies. The results indicate that liquidity is not a significant variable to estimate the valuation of these companies. Nonetheless, the calculated liquidity discount for Jerónimo Martins is far from the forecasted price discount, standing at 0.798%. JMT is a family-owned Portuguese Food Retailer, present in Portugal, Poland, and Colombia, mainly focused on discount-format stores. To value this retailer, a Sum-of-the-Parts approach was employed, where a discounted cash flow analysis was developed for each of the geographical segments, accounting for the supplemental segment. The valuation generated a buy recommendation with a price target of €24.9/sh for 2023YE, with an upside potential of 22% from the January 13th 2022 closing price of €20.4/sh, with a medium to low risk. To support the base case of the report, other methods such as Relative Valuation were applied. The company’s expansion plan to Romania was also considered as a real option.Instituto Superior de Economia e GestãoBarros, VictorRepositório da Universidade de LisboaTita, David Filipe de Sousa2023-08-25T09:22:05Z2023-062023-06-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.5/28235engTita, David Filipe de Sousa (2023). “Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestãoinfo: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:RCAAP2023-08-27T01:32:41Zoai:www.repository.utl.pt:10400.5/28235Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T20:27:38.898716Repositório 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 Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
title Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
spellingShingle Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
Tita, David Filipe de Sousa
Equity Research
Valuation
Retail
Liquidity Discount
title_short Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
title_full Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
title_fullStr Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
title_full_unstemmed Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
title_sort Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry
author Tita, David Filipe de Sousa
author_facet Tita, David Filipe de Sousa
author_role author
dc.contributor.none.fl_str_mv Barros, Victor
Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Tita, David Filipe de Sousa
dc.subject.por.fl_str_mv Equity Research
Valuation
Retail
Liquidity Discount
topic Equity Research
Valuation
Retail
Liquidity Discount
description Mestrado Bolonha em Finanças
publishDate 2023
dc.date.none.fl_str_mv 2023-08-25T09:22:05Z
2023-06
2023-06-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/28235
url http://hdl.handle.net/10400.5/28235
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Tita, David Filipe de Sousa (2023). “Equity research Jeronimo Martins SGPS, SA : pricing discount for limited liquidity in the food retail industry”. Dissertação de Mestrado. Universidade de Lisboa. Instituto Superior de Economia e Gestão
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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