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Compact case
Authors: Nicolas Eugster (IESEG School of Management)
Originally published in: 2020
Version: 3-Feb-2020
Revision date: 02-Mar-2020
Length: 3 pages
Data source: Generalised experience

Abstract

This case presents a concrete example of company valuation using the peer comparison method. The goal is to assess the value at the end of 2017 of Daimler, a German automotive corporation, by using a sample of five comparable companies: Peugeot, Renault, BMW, Audi, and Ford. Accounting figures for the current and the two previous years allow the construction of five different multiples: Net Sales, EBIT, EBITDA, Net Income, and Book Value multiple. The data were collected from Thomson Reuters Datastream and are available in the attached Excel file. In a second step, students are asked to compare their result with the true stock price of Daimler at the end of 2017 and discuss the over / undervaluation of the share.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Geographical setting

Region:
Europe
Country:
France

Featured company

Daimler AG
Employees:
10000+
Turnover:
EUR 164 billion
Type:
Public company
Industry:
Automotive

About

Abstract

This case presents a concrete example of company valuation using the peer comparison method. The goal is to assess the value at the end of 2017 of Daimler, a German automotive corporation, by using a sample of five comparable companies: Peugeot, Renault, BMW, Audi, and Ford. Accounting figures for the current and the two previous years allow the construction of five different multiples: Net Sales, EBIT, EBITDA, Net Income, and Book Value multiple. The data were collected from Thomson Reuters Datastream and are available in the attached Excel file. In a second step, students are asked to compare their result with the true stock price of Daimler at the end of 2017 and discuss the over / undervaluation of the share.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Geographical setting

Region:
Europe
Country:
France

Featured company

Daimler AG
Employees:
10000+
Turnover:
EUR 164 billion
Type:
Public company
Industry:
Automotive

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