Speed limit

: avaliação financeira de uma empresa do setor da sinalização e segurança rodoviária

Abstract

This dissertation represents the culmination of the Master's degree in Finance and was conducted in an organizational setting at Triple A Capital & Finance, a company specializing in company valuation, as well as merger and acquisition processes. The objective of this report is to present the evaluation of Alpha company using the Discounted Cash Flow model (DCF). To do so, revenue and expense forecasts were obtained from the company's management for a five-year period, allowing for the determination of Free Cash Flow to Firm. Alpha is characterized as a small and medium-sized enterprise (SME) in the metal mechanic sector, currently employing 26 workers. The company closed the year 2021 with a total adjusted asset of 3 745 540 euros and an EBITDA of 231 032 euros. Regarding the model used (DCF) it allowed for a complete and detailed analysis of the company's financial aspects, and the results obtained will be fundamental for future strategic decision-making. Based on this model, the Enterprise Value was estimated at 4 241 228 euros and the Equity Value at 1 120 630 euros. To achieve these results, the contribution of the sales growth perspective was crucial, and from the 5th year on, no growth is expected due to the low outlook of the sector. In order to give robustness to this report, a sensitivity analysis was carried out, where certain variables such as sales growth, risk-free interest rate, and salary policy were changed in order to understand their impact on the company's valuation.

Date of Award	6 Jul 2023
Original language	Portuguese
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Bernardo de Vasconcelos e Sousa Paula Marques (Supervisor)