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Equity research: Farfetch - the rise of the Portuguese unicorn

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Resumo:The present final work project aims to value Farfetch, an online luxury retail platform known for its revolutionary way to sell fashion, with a marketplace that provides access to more than 1,300 sellers in more than 190 countries. Following the strong momentum verified in the migration of sales to online during 2020 and 2021 fostered by the ongoing Covid-19 pandemic, we believe the firm has a large addressable market and a great potential for growth. Thereby, a favorable market outlook and a strong revenue growth forecast for the upcoming years provide good prospects for the company which, according to our DCF valuation and scenario analysis, we project to be traded at $41.56asof December 31, 2022, resulting in a return of 36%forshareholdersand leading to a BUY recommendation
Autores principais:Araújo, Maria Lopes De
Assunto:E-commerce Technology Equity research Online luxury
Ano:2022
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:The present final work project aims to value Farfetch, an online luxury retail platform known for its revolutionary way to sell fashion, with a marketplace that provides access to more than 1,300 sellers in more than 190 countries. Following the strong momentum verified in the migration of sales to online during 2020 and 2021 fostered by the ongoing Covid-19 pandemic, we believe the firm has a large addressable market and a great potential for growth. Thereby, a favorable market outlook and a strong revenue growth forecast for the upcoming years provide good prospects for the company which, according to our DCF valuation and scenario analysis, we project to be traded at $41.56asof December 31, 2022, resulting in a return of 36%forshareholdersand leading to a BUY recommendation