The Home Depot : leading the market

• Autor(a) principal: Piçarra, Mariana Bação Segurado Guerreiro
• Data de Publicação: 2015
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/18731
• topic: Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The main goal of this dissertation is to value The Home Depot, which is currently the largest home improvement retailer in the world, in terms of revenues. There is still no consensus concerning the best method to value a company, although DCF is assumed to be one of the best methods. This way, The Home Depot will be valued through this approach and then compared with the relative valuation by using its peers. The dividend discount model was also applied. The outcome resulting from the valuation approaches are then compared with one performed by the investment bank JP Morgan around the same date as this valuation. This way, given the successful strategy of The Home Depot and its leadership in the market, we find the company value to be undervalued and there is expectation that its stock price continues to rise.