Sustaining a top position in the beauty market - L´Oréal thrives in a trend based industry

• Autor(a) principal: Ribeiro, Beatriz Santos
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/144631
• topic: Valuation; Finance; Beauty; L´Oréal; Digital revolution; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The current paper is an equity research for L'Oréal, S.A., the world's largest cosmetics firm. The firm is present in 150 countries and offers a wide range of goods, from skincare and haircare, to many others. The major goal is to determine whether to propose a BUY, HOLD, or SELL advice on the company's stock price.This advice is done on the basis of the current share price and on our valuation of the firm. To determine the share price on December 22, the discounted cash flow (DCF) method was used. Moreover, a multiples analysis was also undertaken to corroborate this valuation. Both strategies entail in-depth research about the beauty industry, L'Oréal, and its competitors. From this, the analysts propose that investors BUY L'Oréal stock since its current share price is below the DCF target price of 462.39 € as of December 31, 2022. By that time, a 4€ per share dividend will be paid, summing up to a total shareholder return of 14.83%.