Equity valuation
: Vestas Wind Systems A\S

  • João Gonçalves Alves de Castro (Student)

Student thesis: Master's Thesis


The goal of this Thesis is to evaluate Vestas Wind Systems A\S. For this purpose, the current valuation methodologies were discussed. The conclusion was to use three valuation methodologies. Firstly, the Discounted Cash Flow methodology was performed due to its acceptability both among researchers and professionals. Three scenarios were created to account for the uncertainty tied with the cyclicality of the business, and probabilities were assigned based on the economical reasonability of each. A final price of kr. 300,51 was reached, implying that the firm is undervalued (market prices kr. 250). Secondly the Economic Value Added approach was conducted, providing insight on the periods in which the company is able to generate economic profit. The three scenarios were also used. The final price of kr. 356,62 was reached yielding a buy opportunity. Thirdly the multiples valuation was performed in order to better understand the industry and the company’s peers. A forward looking enterprise value to EBIT multiple was used and a final price of kr. 302,01, also implying that the company is undervalued. In addition a Value at Risk analysis was performed to access the risk of our recommendation. Finally our valuation target price (from 300 to 360) was compared with the valuation from Skandinaviska Enskilda Banken, and reached the conclusion that although results are similar, methods and business assumptions differs.
Date of Award2015
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé Carlos Tudela Martins (Supervisor)


  • Mestrado em Finanças

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