Equity valuation : L´Oréal Paris

• Autor(a) principal: Ruivo, João Pedro Bernardino
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/40688
• topic: L´Oréal Paris; Beauty; Discounted cash flow; Relative valuation; Target price; Beleza; Fluxo de caixa descontado; Avaliação relativa; Preço alvo; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

This dissertation presents a valuation of L´Oréal Paris the largest company in the beauty industry. A company listed in the CAC 40 under the symbol OR.PA. At the time of this dissertation, the share price was 350$ on 19/04/2022. This dissertation has the goal to provide an investment recommendation based on my estimate of the equity value of the company. First is analyse the external environment of the company and his financial performance in the last decade. The methods used to determine the share price were DCF and multiple- Relative Valuation. In the DCF models were used some Sensitivity analyses were to complement the model. The DCF final price was 411€. The multiple average prices was 311€. The final part is made a comparison between my forecast and the JP report about L´Oréal´s share price. To sum up, is expected that the company increases its revenues and improve its efficiency in terms of costs during the next years despite the effects of higher inflation and war in Ukraine. The target price recommended is 402€.