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Equity Valuation Report - GALP
Equity Valuation Report - GALP
Equity Valuation Report - GALP
16/12/2014
Business
Company:
Chairman:
Amrico Amorim
CEO:
Manuel de Oliveira
Company News
According to the Econmico news, the exports of refined
products of Galp fires again in the third quarter of this year
compared to the same period last year, registering an increase
of 32.9%. In another way, the same news says that, the company
also saw an increase in total production of crude which was
mainly contributed by the Brazilian and Angola oil fields.
According also to our valuation, this news can be compared to
the (high) growth rate of 2.30% obtained.
By the way, the decrease of the crude prices in last days have
influenced the decrease in the Galp Energia shares prices. The
last price of the crude (30th November) was 68.33$.
8.0 (15/12/2014)
Stock Exchange:
PSI-20
829,250,635
Volume: 1.950.107
Major Shareholders:
25.000
20.000
15.000
Revenues
10.000
Profit
5.000
0
2010
2011
2012
2013
Main Competitors
BP
EDP
Stock Performance
Repsol
20,00%
Multiples
15,00%
10,00%
Return
5,00%
2014
Company
Sector
Price to Sales
0.50
3.2
EV / EBITDA
12.42
14.3
PER
48.79
14.8
PBV
1.54
3.8
0,00%
-5,00%
PSI-20
-10,00%
GALP
-15,00%
-20,00%
01-11-2014
01-06-2014
01-01-2014
01-08-2013
01-03-2013
01-10-2012
01-05-2012
01-12-2011
01-07-2011
01-02-2011
01-09-2010
01-04-2010
01-11-2009
01-06-2009
01-01-2009
-25,00%
3.
Corporate Finance Department | ffc@fepfinanceclub.org | www.facebook.com/FEPFinanceClub
Valuation Results
According to our valuation, the value per
share of the company is higher than its price
per share. That means, under our
assumptions, Galp Energia is undervalued by
the market.
Financial Ratios
Payout Ratio
2013
DPS
2012
P/E
2011
EPS
2010
0
3,00
2,00
Asset Turnover
Ratio
1,00
Financial
Leverage
0,00
Return on
Equity
2011
2013
2012
2013
968
987
1,064
Dep. &
Am.
404
426
585
442
CAPEX
958
914
749
779
WC
391
529
50
- 526
Taxes
- 149
- 171
- 136
- 172
FCFF
- 452
- 645
52
638
Filipe Sampaio
Catarina Pereira
13.46%
1.4
Source: Damodaran
2.76%
Source: Bloomberg
Market Premium
10.40%
Source: Damodaran
3.76%
Kd
Default Spread
1.00%
Source: Damodaran
21,00%
Source: KPMG
D/EV
23.22%
WACC
11.02%
2.30%
2014 (E)
1,045
EBITDA
Assumptions
Tax rate
Valuation Summary
(Million )
12.2
2012
Beta
4,00
2011
13.2 bn
DuPont Analysis
2010
Enterprise Value
Sandor Bolla
Sensitivity Analysis
Share Value
()
W
A
C
C
g
-0.5%
0.0%
+0.5%
-0.5%
12.51
13.30
14.19
0.0%
11.54
12.24
13.01
+0.5%
10.68
11.29
11.97
Nitusha Anup
Daaliya Headlie