Equity valuation of Mota Engil

Abstract

Equity valuation is used in several areas of corporate finance with a variety of different purposes. However, there is no single valuation methodology that fits all situations. We present the main valuation models used by practitioners, with a stronger emphasis on those that are more appropriate to value the Equity of Mota Engil. We proceed to find the value of Mota Engil using the Discounted Cash Flow method, and cross check its results with those obtained using relative valuation methods. We also compare our results to those of a leading Portuguese investment bank. We find that the market value of Mota Engil does not reflect the value of the company, there being a strong upside potential to the price of its shares

    Similar works