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 Award | 29 Jun 2023 |
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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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- Kering
- DCF
- APV
- Relative techniques
- Target share price
Equity Valuation Kering S.A.
Colzani, F. (Student). 29 Jun 2023
Student thesis: Master's Thesis