Valuation methodologies

: a case-study

Abstract

This paper titled "Valuation Methodologies. A Case-Study" explores valuation approaches used in the business context, focusing on a specific practical case, addressed in the context of a curricular internship at the company Triple A - Capital & Finance, based in Porto, Portugal. The research analyzes methods such as Discounted Cash Flow (DCF) analysis, Multiples analysis and Options Analysis (admittedly, the less commonly used), highlighting their limitations and strengths. By studying the methodologies and applying the most appropriate ones to the practical case of the company in question (ABC, Inc.), the study seeks bases to support its intrinsic value and the impact of external factors such as the current war situation in the Middle East and the rise in inflation and interest rates. Conclusions derived from the comparison of the approaches suggest, in this specific case, considering the company used and its financial data, an effective complementarity between DCF and Multiples analysis, providing a comprehensive valuation for the company in question. This research tries not only to contribute to the understanding of valuation methodologies but also to offer relevant practical applications for the business world.

Date of Award	17 Jul 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Luis Pacheco (Supervisor)