Equity valuation

: Banco Português de Investimento

Abstract

In this dissertation I will expose the process that lead me to give BPI a BUY recommendation for a price target of 1,75€ (against 1,466€ in August 2014). My work adds to the investment community (compared with the BCP report of May 2014) by giving a more detailed and forward-looking valuation. Detailed because I valuate domestic and international activities separately, accounting this way for a higher risk in the latter, but also greater profitability. Forward looking because I value BPI based on the excess return it is expected to generate. Using this approach I penalized BPI in the near future but I captured the long-term opportunities.

Date of Award	12 Sept 2014
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)