Equity research: Grupo Ibersol

• Autor(a) principal: Lopes, Daniel Filipe Alves
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/28301
• topic: COVID-19; DCF valuation; Multiples; Valor justo Fair value; Múltiplos

The main goal of this project was the selection of a company present in a market that has been affected by the COVID-19 pandemic. Ibersol group, which operates in Portugal, Spain, and Angola, was the company chosen, being listed on the stock exchange at 5.18 euros on 31/12/2021. The valuation of the group was made by different valuation methods that were analyzed and compared, these being EVA, DCF, and the comparison with multiples. Some assumptions were made based on the company's historical data, the effects of the pandemic on the world and the industry, and the macroeconomic context. After we get the share price, a sensitivity analysis was conducted to analyze potential variations that may occur in the most susceptible variables, such as sales or costs, and to understand possible company valuation changes. From a precautionary perspective, an investment risk analysis took place, through the evaluation of some risks such as exchange rate variation, as a result of the group's involvement in the Angolan market. Furthermore, the group is present in a highly dependent market on consumer habits and new trends, difficult factors to predict, which implies a redoubled attention to new ideas and competitors. Given the valuation made through the DCF valuation method, the fair value per share of the Ibersol Group is 8.82 euros on 31/12/2021. Compared to the real value, this was undervalued on the same date. Concluding the analysis, a buy position is recommended.