Equity valuation Swatch Group AG

Abstract

Complex understanding of the entire amplitude of market movements and how they are correlated is an important tool to succeed when investing, nonetheless, the foundation of the latter lies on fundamentals analysis, i.e. Equity Valuation. In order to invest successfully, the ultimate knowledge is based on understanding the intrinsic value of a company and how it reflects versus markets’ pricing. The objective of this dissertation is to provide an in-depth breakdown of the relevant literature in the valuation fields, followed by a customized methodology that evaluates the Swatch Group’s fair value within the current industry context. For comparison purposes this valuation is then analyzed versus a J.P. Morgan Investment Bank coverage note. The target price for the bearer shares is valued at 495,00 CHF, 17% above the current market consensus, considering it to be significantly underestimated.

Date of Award	27 Apr 2015
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)