O caso da Cofina S.G.P.S., S.A.

: equity research

Abstract

With a relevant position on the market segment of newspapers and magazines, Cofina, S.G.P.S., S.A (from now on referred as Cofina or Group) is one of the major groups of the written press operating in Portugal. It holds a portfolio of 5 newspapers and 10 magazines, namely Correio da Manhã, which is a generalist daily newspaper (market leader), and Sábado, a generalist magazine that has been strengthening its market position. The Group has shown the ability to counteract the unfavorable macroeconomic context, the strong competitive environment of the sector and the fall in the advertisement market, which has been reflected in an increased market share and a solid operational performance. However, the instability in the stock market has also affected Cofina’s share price, which has devalued more than 55% since January 2011. This Thesis aims to obtain the value of Cofina’s stocks through a profound analysis of the Group and its industry, as well as according to its growth perspectives. The evaluation was based on a literature review and on the best equity valuation practices, in order to conciliate the theory and practice and to reach the real value of Cofina’s share price. With this evaluation it was possible to conclude that Cofina’s stocks are quoted under their intrinsic value, 0,77 euros, presenting a potential appreciation of 174,7%, which corresponds to a buying recommendation. This suggestion is due to Cofina’s solid operational performance, with EBITDA margins above the average of its peers as well as of the other players in the Portuguese sector.

Date of Award	2011
Original language	Portuguese
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)