The IPO of Mobileye Global Inc.: Boom or bust?

• Autor(a) principal: Costa, Daniela Ribeiro
• Data de Publicação: 2023
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/30444
• topic: Oferta pública inicial OPI - -- Initial public offering IPO; Avaliação de empresas -- Business valuation; DCF Discounted Cash Flow --; Free Cash Flows to the Firm; Relative valuation; Avaliação por múltiplos Valuation using multiples; Mobileye Global Inc.; Fluxos de Caixa Livres para a Empresa; Avaliação relativa

Mobileye Global Inc., a subsidiary of Intel, specializes in advanced driver assistance systems (ADAS) and was relisted on the Nasdaq Global Select Market on October 26, 2022. The company's innovative technology places it at the forefront of the rapidly evolving automobile technology industry. This project analyzes Mobileye's Initial Public Offering (IPO) on October 26, 2022, comparing the stock's debut price with values derived from valuation methods. The aim is to offer an investment recommendation based on pricing and other critical factors, while determining if the stock entered the market at an appropriate valuation. Two valuation models are employed: the Discounted Cash Flow Valuation Model, considering two scenarios, and Relative Valuation (multiples). Assumptions are rooted in historical company performance, macroeconomic environment, and industry data. Additionally, a sensitivity analysis is conducted to the Discounted Cash Flow Valuation Model, to ensure result robustness and assess the impact of different assumptions and potential factor changes on the stock price. In conclusion, the study indicates that Mobileye was undervalued upon market entry, signaling potential for future growth and a good investment opportunity. This insight is pivotal for assessing the company's IPO and its attractiveness to prospective investors.