Adidas Group

: equity valuation thesis

Abstract

The aim of this thesis is to present a valuation for Adidas Group stock at December 31st 2016, company whose mission is “to be the global leader in the sporting goods industry with brands built upon a passion for sports and a sporting lifestyle.” Adidas Group is a globally known multinational founded in 1949 by Adi Dassler whose headquarters are located Herzogenaurach, Germany. In November 1995 the Germany based company went public and three years afterwards, in 1998, Adidas share was admitted in the DAX30 stock exchange where the 30 largest quoted companies are listed. Three different valuation approaches were used in order to define a better range where Adidas AG stock could fall. These three approaches were the DCF APV, which holds the upper bound of the range, the Multiples Valuation and the Dividend Discount Model, which holds the lower bound of the range. After performing the three valuation models, I performed a comparison to an equity research note issued by Exane BNP Paribas in January 19th 2017. In the end, an Investment Note was issued, summarizing all the process and advising a SELL recommendation at a target price of 161,53€.

Date of Award	20 Jul 2017
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)