The purpose of this thesis is to calculate the fair price per share of Enagás, on the 31st of December 2016. For this matter, by doing my literature review, I found the Discounted Cash Flow approach to be the most suitable. However, given the circumstance that there is not enough information to do the DCF model to all the company’s operations, I had to resort to multiples for some parts of the company. By the performing the Sum of the Parts, including all the company’s assets, I reached a Equity market value of 7.17 Billion Euros, corresponding to a share price of 30.03 Euros. This valuation represents an upside potential of 15.52%, when comparing to the closing price of 31/12/2015, of 26.00 Euros. According to my research, I share the belief of some analysts that Enagás is being undervalued by the market and so, it represents an attractive investment opportunity. Accordingly, a “buy” recommendation is the result of my best effort to predict the future direction of the company, while taking into account the macroeconomic set.
Date of Award | 19 Jul 2016 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | José Carlos Tudela Martins (Supervisor) |
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Enagás, S.A. : equity valuation
Coelho, B. S. R. (Student). 19 Jul 2016
Student thesis: Master's Thesis