Equity valuation of the EasyJet Company

• Autor(a) principal: Fonseca, Ana Carolina Henriques
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/31325
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

EasyJet is a British low cost airline based in London Luton. The company carried more than 96 million passengers in FY19 and recorded a total revenue of £6.3 billion. Focused on their customers’ satisfaction the company has followed key value such as, innovation, integrity, one team, and above all safety. The purpose of the current dissertation is to achieve the most accurate and robust value of EasyJet’s equity value. Following this, the Discounted Cash Flow Method and Multiples valuation approaches was applied, reaching a price per share of £6,51 on 30 June, 2020. Furthermore, a sensitivity analysis was performed in order to understand the impact on the company’s value on changing the expected crash in 2020 and the number of years necessary to EasyJet recover to the levels before Covid-19 pandemic. Additionally, it was study the impact on enterprise value by changing the WACC and the terminal growth rate. Lastly, a comparison between the conclusion of current dissertation and the ones reached by investment report’s analyst from Market Screener was made. The conclusion from the current dissertation was that a recommendation to hold EasyJet shock.