EDP Renewables equity valuation thesis
Autor(a) principal: | |
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Data de Publicação: | 2016 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/21921 |
Resumo: | This dissertation valuates EDP Renewables, a subsidiary company from EDP, listed on PSI20, operating in the Utilities industry - renewables energies field. Due to the energy sector transformations, the continuous search for clean sources of power plus the plausible worldwide utilities industry transformation, becomes imperative to valuate companies that can be game changers. To achieve the value per share it was used the Discounted Cash Flow, both the Free Cash Flow to the Firm & the Free Cash Flow to Equity approaches, giving us an equity value of m7.569€ and m7.564€ respectively – this translates in an 8.68€ and 8.67€ price per share. Based on the Dividend Discount Model, the equity value is m7.555€ meaning a price per share of 8.66€. According with the Multiples EV/Revenue, EV/EBITDA and Price/CF per share, we reached prices of 8.19€, 8.88€ and 8.57€. A real option approach was also developed to quantify a recent investment project (wind farm) in the UK. Due to the uncertainty related with the industry and the markets, sensitivity analysis were incorporated into the model to absorb real life volatility. In the end, we reached a final price of 8.6€ per share and we recommend a buy action (actual price: 7.11€). As benchmark for the final price per share were used valuations from Morgan Staley (8.3€) and Haitong Bank (8.2€) which allowed us to conclude that the value reached in this thesis is in line with the opinion of others financial institutions and provides this dissertation with practical usefulness. |
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EDP Renewables equity valuation thesisDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis dissertation valuates EDP Renewables, a subsidiary company from EDP, listed on PSI20, operating in the Utilities industry - renewables energies field. Due to the energy sector transformations, the continuous search for clean sources of power plus the plausible worldwide utilities industry transformation, becomes imperative to valuate companies that can be game changers. To achieve the value per share it was used the Discounted Cash Flow, both the Free Cash Flow to the Firm & the Free Cash Flow to Equity approaches, giving us an equity value of m7.569€ and m7.564€ respectively – this translates in an 8.68€ and 8.67€ price per share. Based on the Dividend Discount Model, the equity value is m7.555€ meaning a price per share of 8.66€. According with the Multiples EV/Revenue, EV/EBITDA and Price/CF per share, we reached prices of 8.19€, 8.88€ and 8.57€. A real option approach was also developed to quantify a recent investment project (wind farm) in the UK. Due to the uncertainty related with the industry and the markets, sensitivity analysis were incorporated into the model to absorb real life volatility. In the end, we reached a final price of 8.6€ per share and we recommend a buy action (actual price: 7.11€). As benchmark for the final price per share were used valuations from Morgan Staley (8.3€) and Haitong Bank (8.2€) which allowed us to conclude that the value reached in this thesis is in line with the opinion of others financial institutions and provides this dissertation with practical usefulness.Esta dissertação tem como missão avaliar financeiramente a empresa EDP Renováveis, subsidiária da EDP, S.A, listada no PSI20 que opera no mercado das energias renováveis. Devido às transformações do sector, à procura contínua de fontes de energia limpa e a uma plausível transformação do modelo de negócio das Utilities a nível mundial torna-se pertinente avaliar empresas que podem desempenhar um papel crucial nesta mudança. Para obter o valor por acção recorreu-se ao método de Discounted Cash Flow method, foram usados ambos o Free Cash Flow to the Firm e o Free Cash Flow to Equity que indicou um valor de m7.569€ e m7.564€ para o capital próprio o que se traduz num preço por acção de 8.68€ e 8.67€. Com base no modelo Dividend Discount Model o capital próprio é de m7.555€ e um preço por acção de 8.66€. Através dos múltiplos EV/Revenue, EV/EBITDA e Price/CF per share, os preços alcançados foram de 8.19€, 8.88€ e 8.57€ por acção. Foi ainda desenvolvido uma avaliação de um recente projeto de investimento (parque eólico) no UK com base em real options. Devido à incerteza inerente da indústria e dos próprios mercados financeiros foram também criados senários de sensibilidade para incorporar a volatilidade do mundo real. Em termos comparativos, foram revistas avaliações financeiras do Morgan Stanley (8.3€) e do Haitong Bank (8.2€) o que nos permite concluir que os valores alcançados nesta tese estão em harmonia com a opinião de bancos internacionais de investimento e caracteriza esta tese com utilidade prática.Martins, José Carlos TudelaVeritati - Repositório Institucional da Universidade Católica PortuguesaSalgueiro, David Manuel Salgueiro Amaral2017-03-24T10:49:47Z2017-02-2320162017-02-23T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/21921TID:201647699enginfo: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:RCAAP2023-07-12T17:28:05Zoai:repositorio.ucp.pt:10400.14/21921Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:18:15.490444Repositório 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 |
EDP Renewables equity valuation thesis |
title |
EDP Renewables equity valuation thesis |
spellingShingle |
EDP Renewables equity valuation thesis Salgueiro, David Manuel Salgueiro Amaral Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
EDP Renewables equity valuation thesis |
title_full |
EDP Renewables equity valuation thesis |
title_fullStr |
EDP Renewables equity valuation thesis |
title_full_unstemmed |
EDP Renewables equity valuation thesis |
title_sort |
EDP Renewables equity valuation thesis |
author |
Salgueiro, David Manuel Salgueiro Amaral |
author_facet |
Salgueiro, David Manuel Salgueiro Amaral |
author_role |
author |
dc.contributor.none.fl_str_mv |
Martins, José Carlos Tudela Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Salgueiro, David Manuel Salgueiro Amaral |
dc.subject.por.fl_str_mv |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This dissertation valuates EDP Renewables, a subsidiary company from EDP, listed on PSI20, operating in the Utilities industry - renewables energies field. Due to the energy sector transformations, the continuous search for clean sources of power plus the plausible worldwide utilities industry transformation, becomes imperative to valuate companies that can be game changers. To achieve the value per share it was used the Discounted Cash Flow, both the Free Cash Flow to the Firm & the Free Cash Flow to Equity approaches, giving us an equity value of m7.569€ and m7.564€ respectively – this translates in an 8.68€ and 8.67€ price per share. Based on the Dividend Discount Model, the equity value is m7.555€ meaning a price per share of 8.66€. According with the Multiples EV/Revenue, EV/EBITDA and Price/CF per share, we reached prices of 8.19€, 8.88€ and 8.57€. A real option approach was also developed to quantify a recent investment project (wind farm) in the UK. Due to the uncertainty related with the industry and the markets, sensitivity analysis were incorporated into the model to absorb real life volatility. In the end, we reached a final price of 8.6€ per share and we recommend a buy action (actual price: 7.11€). As benchmark for the final price per share were used valuations from Morgan Staley (8.3€) and Haitong Bank (8.2€) which allowed us to conclude that the value reached in this thesis is in line with the opinion of others financial institutions and provides this dissertation with practical usefulness. |
publishDate |
2016 |
dc.date.none.fl_str_mv |
2016 2017-03-24T10:49:47Z 2017-02-23 2017-02-23T00:00:00Z |
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/10400.14/21921 TID:201647699 |
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http://hdl.handle.net/10400.14/21921 |
identifier_str_mv |
TID:201647699 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
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openAccess |
dc.format.none.fl_str_mv |
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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