Adidas Group

: equity valuation thesis

Abstract

This dissertation has the purpose of valuating Adidas Group, a German company, listed on the DAX30, which has three main brands, Adidas, Reebok and TaylorMade. To reach a value for the share of the company, taking in consideration the future of the group, it has been used different methods. The Discounted Cash Flow (DCF), considered by many analysts the most accurate method is the process of valuating Adidas explained more detailed in this Thesis, which allowed us to get to a value of 18.799,44M€ for the Equity which means a value of 94€ per share. The relative valuation method, considered as a good complement to the DCF was used as it was the Dividend Discount Model (DDM), based on the dividends that will be distributed to the shareholders in the next years. Bearing this in mind many forecasts and assumptions about several items of the financial statements have been made in order to get to the fair value of the share. To reach an accurate range of values for the Adidas share price it has been done a sensitivity analysis due to some factors used related to the market, to the industry and to the company that can vary from the ones assumed and computed because of the uncertainty. Ultimately, a comparison with the target price of the report made by J.P. Morgan, published in November 2015, was done, where they reached a value of 85€ per share.

Date of Award	18 Feb 2016
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)