Equity valuation

: Burberry Group PLC

Abstract

This dissertation had the purpose of performing an equity valuation for Burberry Group PLC, to achieve a fair value of the British company’s stock.This process was developed by recurring to two different valuation models: the Discounted Cash-Flow Valuation Model and the Relative Valuation Model. By combining the current share price from both models, it was possible to achieve a final share price of £23.67 as of 29th March 2022. Based on this share price, it is recommended to HOLD Burberry’s stock. A sensitivity analysis and a scenario analysis were also conducted to account for the current social and economic uncertainty mainly caused by the Covid-19 pandemic. Therefore, different possible scenarios that can affect the company’s share price were considered.Finally, it was performed a comparison with an equity valuation report conducted by the analyst Adam Cochrane, from Deutsche Bank. The Deutsche Bank’s report provided a final recommendation to HOLD the company’s stock based on their target price of £22.76 as of 25th January 2022.

Date of Award	29 Jun 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)