Company valuation and investment case of Inditex

: valuation and investment attractiveness of Inditex

Abstract

This study presents a comprehensive analysis of Inditex, one of the world’s largest fashion retailers, focusing on its financial and strategic position. The research aims to provide an in-depth valuation of the company and assess its investment attractiveness through various analytical frameworks. It begins by outlining the study's objectives, emphasizing its relevance in understanding Inditex9s valuation and investment potential. A literature review follows, establishing the theoretical foundation by discussing key valuation methods while exploring market dynamics. Then the study offers an industry and market analysis, examining macroeconomic trends and competitive forces shaping the fashion industry, providing insights into the industry's evolving dynamics and their implications for Inditex. It details the research methodology, explaining the data sources and valuation techniques used to assess the company9s worth and investment appeal. A detailed financial analysis presents an evaluation of Inditex9s income statement, balance sheet, and cash flow trends, including financial forecasting and the application of the chosen valuation model to derive an accurate assessment of Inditex9s value. Additionally, the study conducts a peer group analysis, comparing Inditex9s performance with its competitors, followed by a relative valuation positioning Inditex within the industry and providing a benchmark for its valuation metrics. The study concludes by presenting its key findings, offering strategic recommendations for Inditex to enhance its operations and performance in the future, and providing a final investment recommendation based on the analysis.

Date of Award	8 Jul 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Gonçalo Faria (Supervisor)