Amer Sports Corporation

: equity valuation

Abstract

The following dissertation aims to provide an equity valuation of Amer Sports’ stock as of 31st December 2015. Amer Sports is one of the world’s leading sporting goods companies, operating in all of the major markets (EMEA, Americas and Asia Pacific) and with a presence in 31 countries. The company is divided into three primary business segments – Winter and Outdoor, Ball Sports and Fitness – and two other segments – Headquarters and Non-Recurring Expenses. This dissertation will cover both the theory and the practice of a valuation exercise. The models chosen were the WACC-based DCF and a Relative Valuation using the Forward 12M EV/Sales Multiple. Amer Sports’ WACC-based DCF was applied as a sum of the parts of its five segments and three equallyweighted scenarios were also created. The Relative Valuation was carried out through the sum of the parts of each of the three primary business segments. As a result, a weighted average Target Price Per Share of €32.41 was achieved using the WACC-based DCF. Also, a Target Price Per Share of €27.17 was reached using the Forward 12M EV/Sales Multiple. These Target Prices are both superior to Amer Sports Current Price (€26.97). Therefore, we believe that Amer Sports’ stock price is undervalued and a Buy investment recommendation was attributed. Finally, a comparison between this valuation and a JP Morgan investment report issued on the 3rd of February 2016 was made, highlighting structural differences and recommendations on the investment cases.

Date of Award	20 Oct 2016
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)