Equity valuation

: Airbus SE

Abstract

The Aerospace and Defense (A&D) industry was one of the most negatively impacted by the covid crises, having recently started to ramp-up production and deliveries, it is now facing supply-chain bottlenecks as an indirect consequence of the current Russia and Ukraine conflict. Airbus is one of the global leaders in the industry, having surpassed Boeing for the crown position since 2019, benefitting from the grounding of one of its most important aircrafts, the B737 Max. Airbus has been facing some challenging market conditions, but the recovery to pre-pandemic levels seems in reach, leveraging on the resurgence and great demand for air travelling. The present equity valuation aims to value the company using the DCF and Multiples methodology, and compare the resulting price to that of 31st March 2023 (€123.28). The valuation resulted in a price per share of €112.81, a downside of 8.5%, but considering the sensitivities performed the price ranges from €102.01 to €127.75.

Date of Award	17 Oct 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)