Equity research - Kering S.A.

Mestrado em FinançasEquity research a Kering S.A com o intuito de determinar um determinado price target para o valores das acções da Kering S.A a 31 de Dezembro de 2019. No processo para determinar o price target foram utilizados 3 modelos de avaliação distintos, Discounted Cash Flow Model, Dividend Discount Model e Multiples Valuation dos quais se obteve um price target de 576.44 EUR representando um upside de 8.9% face ao preço base utilizado para esta analise de 520.10 EUR de 1 de Julho de 2019.This project is mainly comprised on an Equity Research of Kering S.A. to determine a certain price target of Kering's stock by 31st December 2019. This assessment is mostly assembled by a set of assumptions, made the author of these document, for the time period of 2019F-2023F which reflect the historical performance of the company and the current market settings that may impact such target price. In regards of the computations around the price target definition, three valuation models were covered, the Discounted Cash Flow Model, which discounted all future cash flows generated in the period under analysis and through perpetuity, totaling a price of 580.12 EUR / share, and the Dividend Discount Model and Multiples Valuation Model which totaled 567.00 EUR and 582.22 EUR respectively. Based on these there valuation models, by assigning an equal weight to each one of them, a price target of 576.44 EUR was reached translating into a 8.9% upside potential regarding the reference date of analysis of 525.10 EUR in 1st July 2019. Once, computed the price target, the final recommendation for these equity research document was defined based on the risk criteria that better described Kering S.A market environment settings, providing this way a solid statement for Kering's share price within the period under analysis