Deutsche Lufthansa AG : equity valuation

• Autor(a) principal: Natário, Sofia de Amorim Cruz Guerra
• 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/10400.14/29051
• topic: Airline industry; Equity research; Firm valuation; Deutsche Lufthansa AG; Indústria da aviação; Relatório de pesquisa; Avaliação de empresas; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

It is usually the case that the market value of a share differs from its fair value, as a share’s market value incorporates not only cash and future earning of a company but also investors’ expectations, added to the uncertainty about the future. Bearing this in mind, an evaluation of the share of Deutsche Lufthansa AG was performed in this Dissertation, with the purpose of understanding if, on March 31st 2019, the market value of this company’s share differs or equals its fair value. A Discounted Cash Flow model and a Multiple valuation were chosen to assess the firm’s fair share value, yielding a final value of €23.49. This valuation was supported by a thorough research on the company, the airline industry and overall macroeconomic conditions. Subsequently, comparing this result with the actual share’s market value on March 31st, 2019, which equaled €19.56, a HOLD/BUY recommendation to Deutsche Lufthansa AG’s share was proposed. At the end, the results achieved are compared with the results of an Equity Research Report of the Bank Credit Suisse, which yielded the same conclusion as the valuation performed in this Dissertation.