Voestalpine AG

: equity valuation

Abstract

Voestalpine AG is a steel-based technology and capital goods group and a world leader in the manufacture, processing, and development of sophisticated steel products. The Group supplies technology-intensive sectors, such as the automotive, railway, aviation, and energy industries. The Group had adopted the development strategy for the decade, targeting 2 billion EUR in total revenue by 2020, which is 73% higher compared to the most recent result. The strategy also implies the steady investments of 800 – 1000 million EUR per year. The reports considers all the public information provided by the Voestalpine Group, careful investigation of global economic prospects and separate study of each of the industries operated by the Group. The main valuation was done by means of Enterprise Discounted Cash Flow model, which was chosen as the most appropriate approach assuming all the inputs. By taking into consideration the possible scenarios of economic and market development, the target price was accompanied with VAR and extended range for target price. The thesis target price is compared to the report provided by JP Morgan. Even though the results do not match, the difference is moderate.

Date of Award	2014
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)