Sumol+Compal

: equity research master thesis

Abstract

The purpose of this dissertation is to evaluate Sumol+Compal equity value at the end of 2016. In this sense a detailed analysis on the company financials and industry sector was done, followed by a DCF and Multiples valuation. The DCF resulted in a share price of 1.01€, that represents a downside of 48.5% when compared to the value of the homologous period, 1.96€. The multiples valuation resulted in a share price of 1.55€, 20.9% below the close price of the year 2015. After an extensive sensitivity analysis, the final outcome was defined, Sumol+Compal share price, at the end of 2016, will be around 1.18€. This value represents a downside of 39.8% when compared to value recorded at the end of the previous year and 10.9% regarding September, 27th, 2016 (most recent information). At this date Sumol+Compal share price was at 1.33€, therefore the outcome of this dissertation is a Sell recommendation.

Date of Award	17 Jul 2017
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)