Equity Research: Jerónimo Martins SGPS, SA

The main objective of this dissertation is to carry out a global valuation of Jerónimo Martins and determine its value per share based on cash flows forecasts. In that sense, an analysis of the company was made, as well as a market study regarding the evolution of the retail industry.Jerónimo Martin...

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Bibliographic Details
Main Author de Almeida, Guilherme Alexandre Nunes
Format Dissertation
LanguageEnglish
Published ProQuest Dissertations & Theses 01.01.2021
Subjects
Accounting
Agribusiness
Balance sheets
Bond ratings
Business valuation
Capital assets
Capital expenditures
Cash flow forecasting
Cash flow statements
Corporate profits
Costs
Default
Discount rates
Enterprise resource planning
Equity
Finance
Fixed assets
Investments
Management
Market prices
Political risk
Political science
Portfolio management
Profitability
Ratings & rankings
Retailing industry
Stock exchanges
Supermarkets
Tax rates
Taxes
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Summary:The main objective of this dissertation is to carry out a global valuation of Jerónimo Martins and determine its value per share based on cash flows forecasts. In that sense, an analysis of the company was made, as well as a market study regarding the evolution of the retail industry.Jerónimo Martins SGPS is a Portuguese company, leader in the food retail market in Poland and one of the major players in the Portuguese market, beyond that it is also presence in the Colombian market. Jerónimo Martins also operates in the specialized retail, namely in cosmetics and confectionery markets and in the agribusiness industry. On 31/12/2020 Jerónimo Martins SGPS was listed on the Euronext Lisbon stock exchange and closed the year with a value of €13.82 per share.To determine the company value three valuation methods were used, the DCF, the EVA and the multiples methodology.According with the DCF model, the target price is €13.92, which represents an appreciation of 0.76% and thus the value offered by the market does not recognize the potential growth of the company. A sensitivity analysis was also performed to analyse the sensitivity of the share price to the discount rate and to the perpetual growth rate, two of the most crucial variables.In conclusion, it was done a comparative analysis of the results obtained through the several methods, which lead to a Buy recommendation, in line with the analysis carried out by CAIXA BANK.
ISBN:9798209815914