Equity valuation of Almirall SA

Abstract

This dissertation aims at determining the fair value of Almirall SA equity. The pharmaceutical industries, as well as Almirall SA were researched in detail. Different theoretical approaches were discussed in a literature review that represents the “state of the art” in equity valuation. Based on the literature review, Almirall SA was valued with a sum of the part valuation, including a discounted cash flow valuation for the mature business, a discounted multiple valuation for the company research and development activity and a net present value valuation for income incurring from the recent transaction with AztraZeneca in 2014. The fair value of 16.2 Euros per share determined the target price of this valuation, based on comparing said price with the current share price of 18.4 Euros, I made a recommendation for investors to sell the stock. Finally, this dissertation’s recommendation and valuation was compared with another from an equity research report from Credit Suisse and I proceeded to explain the differences in the recommendation and valuation, which might arise from different assumptions, valuation methods and recommendation method used

Date of Award	21 Jul 2016
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)