There are various occasions for a corporate evaluation: purchase, sale, privatization, IPO, evaluation of growth options, preparation of business restructurings and much more.
This work’s occasion is to determine the corporate value of Fielmann AG from a buyer’s point of view. Somebody wants to invest in Fielmann AG to optimize his own portfolio.
The first part of this assignment describes the framework of a corporate evaluation. After this introducing part, the common methods and approaches of a corporate evaluation, emphasizing the respective advantages and disadvantages, is discussed. The second part applies selected methods to the evaluation of Fielmann AG in practice: The discounted cash flow methods (entity and equity approach) and the multiplier method.
The date of evaluation is December 31st 2011, all data are accessible to the public (mostly via Bloomberg) or based on own assumptions. The applied discounted cash flow methods of corporate evaluation result in a valuation range between 2,923.941 and 2,999.810 million EUR. The multiplier method determines range for the corporate value from 1,429.049 million up to 1,547,258 million EUR. Therefore, for an investor it is fair to pay a price between 34.02 and 71.42 EUR per share.
It is hard to find an adequate peer group for Fielmann AG because there is no other optician listed which is comparable to Fielmann AG. Therefore, the authors recommend the DCF-results an adequate value. The DCF approaches deliver a final result between 2,923 up to 3,000 million EUR (69.62 up to 71.42 € per share) on 31st December 2011 for Fielmann AG.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 1.1. Problem Definition and Objective
- 1.2. Scope of Work
- 2. Framework of a Corporate Evaluation
- 3. The Corporate Valuation Theses
- 3.1. Net Asset Value Methods
- 3.1.1. Liquidation Value
- 3.1.2. Reproductive Value
- 3.2. Discounted Cash Flow Methods
- 3.2.1. Entity Approach
- 3.2.2. Equity Approach
- 3.3. Multiplier Approach
- 3.3.1. Comparative Company Approach
- 3.3.2. Multiplier Design in the Comparative Company Approach
- 3.1. Net Asset Value Methods
- 4. Evaluation of Fielmann AG
- 4.1. Company Profile of Fielmann
- 4.2. Discounted Cash Flow (DCF) Methods
- 4.2.1. Forecast of Future Cash Flows
- 4.2.2. Cost of Capital
- 4.2.3. Entity Approach
- 4.2.4. Equity Approach
- 4.3. Multiplier Method
- 4.3.1. Analysis of the Valuated Company
- 4.3.2. Building up the Peer Group
- 4.3.3. Calculations and Aggregations
- 5. Result Comparison and Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this work is to determine the corporate value of Fielmann AG from a buyer's perspective, aiming to provide a valuation range for investment purposes. The analysis uses various corporate valuation methods to achieve this goal.
- Corporate Valuation Methodologies
- Application of Discounted Cash Flow (DCF) methods
- Application of the Multiplier Method
- Comparative Company Analysis
- Valuation of Fielmann AG
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This chapter introduces the problem of valuing Fielmann AG from a potential investor's standpoint. It defines the scope of the project, outlining the methods used and the overall goal of determining a fair market value for the company. The chapter sets the stage for the subsequent in-depth analysis.
2. Framework of a Corporate Evaluation: This section establishes the theoretical foundation for corporate valuation, providing a comprehensive overview of the principles and concepts underpinning the various valuation methods discussed later in the study. It lays the groundwork for the practical application of these methods to Fielmann AG. The importance of selecting appropriate methodologies based on specific circumstances and available data is emphasized. A strong framework assures the integrity and reliability of the subsequent valuation.
3. The Corporate Valuation Theses: This chapter details several core valuation methods, including net asset value methods (liquidation and reproductive value), discounted cash flow (DCF) methods (both entity and equity approaches), and the multiplier approach, along with a comparative company analysis. Each method's advantages and disadvantages are carefully considered, providing a comprehensive understanding of their applicability and limitations in different contexts. The theoretical underpinnings of each approach are thoroughly examined to prepare the reader for their practical application in the valuation of Fielmann AG.
4. Evaluation of Fielmann AG: This chapter applies the valuation methods outlined in Chapter 3 to Fielmann AG. It begins with a company profile providing essential background information on the firm's business operations. Subsequently, it undertakes a detailed DCF analysis, including forecasting future cash flows and determining the appropriate cost of capital. Furthermore, the chapter includes a multiplier method application, necessitating the careful selection and analysis of a peer group for comparative purposes. This detailed evaluation forms the core of the research and provides the basis for the final valuation range.
Schlüsselwörter (Keywords)
Corporate valuation, Fielmann AG, Discounted Cash Flow (DCF), Multiplier method, Comparative Company Approach, Equity Valuation, Enterprise Value, Financial Modeling, Investment Analysis.
Frequently Asked Questions about the Corporate Valuation of Fielmann AG
What is the purpose of this document?
This document provides a comprehensive preview of a corporate valuation analysis of Fielmann AG. It includes the table of contents, objectives, key themes, chapter summaries, and keywords. The analysis aims to determine a valuation range for Fielmann AG from a buyer's perspective, suitable for investment purposes.
What valuation methods are used in the analysis of Fielmann AG?
The analysis employs multiple corporate valuation methodologies, including Discounted Cash Flow (DCF) methods (both entity and equity approaches) and the Multiplier Method (with a comparative company analysis). Net Asset Value methods (liquidation and reproductive value) are also discussed theoretically.
What are the key objectives of the Fielmann AG valuation?
The primary objective is to determine the corporate value of Fielmann AG from a buyer's perspective, providing a valuation range for investment decision-making. The analysis also aims to demonstrate the application of various corporate valuation methodologies.
What are the key themes explored in the analysis?
Key themes include various corporate valuation methodologies, the practical application of DCF and Multiplier methods, comparative company analysis, and the specific valuation of Fielmann AG. The importance of selecting appropriate methodologies based on specific circumstances and available data is also emphasized.
How is the Discounted Cash Flow (DCF) method applied in the analysis?
The DCF method is applied by forecasting future cash flows for Fielmann AG and determining the appropriate cost of capital. Both the entity and equity approaches are used. This involves detailed financial modeling and projections.
How is the Multiplier Method applied in the analysis?
The Multiplier Method involves selecting a peer group of comparable companies, analyzing their financial data, and calculating appropriate multipliers. These multipliers are then applied to Fielmann AG's financial data to estimate its value. The selection and analysis of the peer group are crucial aspects of this method.
What is included in the chapter summaries?
The chapter summaries provide concise overviews of each section of the analysis. They outline the content and purpose of each chapter, from the introduction and theoretical framework to the practical application of valuation methods to Fielmann AG and the final results and conclusions.
What are the key words associated with this analysis?
Key words include corporate valuation, Fielmann AG, Discounted Cash Flow (DCF), Multiplier method, Comparative Company Approach, Equity Valuation, Enterprise Value, Financial Modeling, and Investment Analysis.
What is the scope of the work?
The scope of the work is to provide a comprehensive valuation of Fielmann AG using multiple established methodologies. It focuses on delivering a valuation range appropriate for investment decisions, and it does not cover areas outside the scope of these methodologies.
Where can I find more details about the valuation of Fielmann AG?
The full details of the Fielmann AG valuation, including the complete methodology, data, calculations, and results, are available in the main report (this document is a preview).
- Quote paper
- Bachelor of Arts Alexander Zureck (Author), Dipl.-Kfm. (FH) Tim Böker (Author), 2012, Corporate Evaluation of Fielmann AG, Munich, GRIN Verlag, https://www.grin.com/document/201564
