Equity Valuation : LVMH Moet Hennessy : Louis Vuitton SE

• Autor(a) principal: Oliveira, Miguel Robbins Salazar
• Data de Publicação: 2020
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/31105
• topic: LVMH; Personal luxury goods industry; Equity valuation; Sum-of-the-parts valuation; DCF; Relative valuation; Indústria de bens pessoais de luxo; Avaliação de património; Indústria de bens pessoais de luxo; Avaliação de património; Avalição da soma das partes; Avaliação relativa; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The author’s goal with the present dissertation is to provide an informed investment recommendation about LVMH Moët Hennessy Louis Vuitton SE (“LVMH”) stock, based on its 2020 year-end estimated value. LVMH is a gigantic French luxury goods conglomerate that consists of multiple businesses, with different risks, growth and cash flow profiles. Consequently, each business segment is valued separately (disaggregated valuation), as if they were standalone companies, and then added up together to derive the group’s value. Each business segments’ value is estimated using two distinct valuation methodologies, i.e., a WACC-based DCF and a relative valuation model. In the end, the results obtained are discussed and framed with other analysts’ opinions, through their comparison with an equity research on LVMH, published by Goldman Sachs. The results of this dissertation set a 12-month price target of €400 for LVMH stock, which considering the current economic uncertainty, supports a hold recommendation.