Equity valuation of Energiekontor AG

Abstract

This dissertation aims to determine the target price of Energiekontor AG, an established Independent Power Producer (IPP) in Germany that is operative in several European countries. The research question of the thesis is as follows: “What is Energiekontor’s fair value per share at of the 1st of January 2024 and resulting upside or downside potential for investors?” The valuation for German S-DAX listed Energiekontor is based on a profound company, competitor and market analysis, including past development and future outlook of Energiekontor’s financials and market trends in the project development and power generation sector. The valuation techniques comprise the WACC DCF-method as representative for the intrinsic valuation and is complemented by a Monte Carlo simulation and a relative valuation, using backward looking multiples. The valuation results in a target price of EUR 114.2 per share. Compared with a closing price of EUR 82.7 per share on Friday the 29th of December 2023 (last trading day in 2023), a buy recommendation can be issued due to a significant upside potential of up to 38.1%. Furthermore, the buy recommendation is in line with the considered equity research report of First Berlin Equity (FB).

Date of Award	8 May 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)