Equity Valuation Kering S.A.

  • Francesca Colzani (Student)

Student thesis: Master's Thesis

Abstract

The primary objective of this dissertation is to determine the target share price of Kering S.A., a renowned French luxury conglomerate established in 1963, for the fiscal year 2023. Within the methodologies presented in the literature review, the Discounted Cash Flow (DCF) approach was applied, specifically the Free Cash Flow to firm (FCFF) and the Adjusted Present Value (APV) models, as they were deemed most suitable for the analysis. Furthermore, relative techniques were employed, focusing on forward multiples such as EV/Sales, EV/EBITDA, and EV/EBIT. The outcome target price for FY 2023, derived as an average of the three different models employed, resulted to be €585, indicating an upside potential of 7% in relation to the current share price of €546.5 as of May 16th, thereby leading in a “Hold” recommendation. This opinion was further supported by the conclusions of the sensitivity analysis, which was incorporated to evaluate the robustness of the two DCF models when stressing out the inputs.
Date of Award29 Jun 2023
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorJosé Carlos Tudela Martins (Supervisor)

Keywords

  • Kering
  • DCF
  • APV
  • Relative techniques
  • Target share price

Designation

  • Mestrado em Finanças

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