Equity valuation : Hermès International SCA

• Autor(a) principal: Gabirra, Joana Maria Araújo Simões Marçal
• 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/10400.14/21918
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

In this dissertation, a valuation of Hermès International is performed. Hermès is an apparel and accessories company, present in the luxury goods industry. Four methods were applied – Discounted Cash Flows using WACC, Dividend Discount Model, Economic Value Added and a Relative Valuation – after which, a sensitivity analysis was performed. As a result of the Discounted Cash Flows approach, a share price of 413,58€ was reached, whereas with Dividend Discount Model and Economic Value Added the share prices were 185,65€ and 344,21€, respectively. Accordingly, a Market-Perform recommendation was given. The Relative valuation is considered only as a validation tool, thus, there is no recommendation based on its results. To conclude, a comparison between the dissertation’s values and Bernstein’s report of September 15th 2016 was made, stressing the major differences between both.