This dissertation aims to determine the best estimate of Hermès’ fair share value as of 26th February 2021 and provide an investment recommendation. The target price was obtained according to a weighted average of the Discounted Cash Flow, Relative Valuation, and Dividend Discount methodologies, supported by a comprehensive macroeconomic, industry, and firm analysis. The obtained fair share value was tested through a sensitive and alternative scenario analysis, accounting for the current economic uncertainty, and compared with the valuation performed by UBS. This dissertation sets a target price of €1,299.41 per share for Hermès, delivering a 39.4% upside potential and implying a buy recommendation.
|Date of Award||30 Jun 2021|
- Universidade Católica Portuguesa
|Supervisor||António Borges de Assunção (Supervisor) & José Carlos Tudela Martins (Co-Supervisor)|
- Equity valuation
- Relative valuation
- Personal luxury goods industry