Equity research on Galp energia / rising up to the challenge - a turbulent journey aiming for decarbonization

This paper is the report of an Equity Research on Galp Energia, SA., a Portuguese Oil and Gas company, that operates in 11 different countries and distributes its products to more than 50 countries. The company was valuated using the Discounted Cash Flow (DCF) and supported with a Multiples Analysis. Considering the risks in which Galp is exposed, multiple scenarios and sensitivity analyses were performed in order to evaluate how the share price changes with different variables used in the valuation. Our final recommendation is to BUY Galp’s stock. According to our DCF valuation, Galp will be traded at €13,15as of 31st Dec.22, that yields a total investor return of 57% (thereof expected Cash Gain of 3%)