Pernod Ricard is a French conglomerate, holding a notorious portfolio of recognized spirits and wine brands. This work aims to perform a thorough valuation of the company and the market in which it is inserted, as a way to reach a final theoretical price. After using a set of financial and strategic assumptions and resorting to models like the Discounted Cash Flow and Relative Valuation, based on multiples, it was possible to achieve an intrinsic price of €189.67 according to the former and a range of prices between €189.55 and €200.58 according to the latter, constituting a BUY recommendation, when compared with the company’s price on December 1st, 2023 (€158.15). These values were subsequently compared with the price achieved by an investment bank, which concluded a theoretical price not far from that reached in this dissertation, more specifically €194.00. Despite, the price estimated by the bank not being highly divergent from that achieved in this work, it considers a HOLD recommendation as more appropriate. However, it is understood in this dissertation that given the upside potential, allied to the positive perspectives for the company, a BUY recommendation is adequate.
| Date of Award | 30 Jan 2024 |
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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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- Alcoholic beverages industry
- Discounted cash flow model
- Pernod Ricard
- Regression forecast
- Spirits and wine
- Relative valuation
- WACC
Equity valuation: Pernod Ricard SA.
Fonseca, J. P. (Student). 30 Jan 2024
Student thesis: Master's Thesis
