The IPO of Flexdeal, SIMFE, SA

• Autor(a) principal: Maria, Tânia Isabel da Conceição
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/19032
• topic: Initial public offering; Company valuation; Discounted cash flow; Multiples; Economic value added; Oferta pública inicial; Avaliação de mpresas; Fluxo de caixa descontados; Múltiplos; Valor económico adicionado

The main purpose of this project is to analyse the initial public offering of Flexdeal, SIMFE, SA, confronting the entry price on the stock market with the values estimated through the valuation methods used. Flexdeal, SIMFE, SA is a company that emerges as a financing alternative, having as main activity the investment in small and medium companies and also in mid caps and small mid caps. Flexdeal, SIMFE, SA is the first and only Investment Company for Stimulation of the Economy (SIMFE) in Portugal. In order to achieve the objective of this project, three valuation models were applied: discounted cash flows, through the valuation from the perspective of the firm; multiples (or relative valuation); and economic value added. Considering a forecast period of five years and the projections based on the historical year 2018 and the 1st Semester of 2019, it was possible to infer three different values per share. The lowest was obtained through relative valuation, 5.73 euros, while the highest price resulted from economic value added valuation method, 6.43 euros, finally, discounted cash flow valuation led to a price of 6.21 euros. Comparing these results with the closing price of 4.93 euros, the recommendation is to buy.