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Lindt & Sprungli AG: the future of a chocolate Giant

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Resumo:This report, supported by the annexed sheets from the valuation model file, aims to provide a Market Capitalization Target for Lindt & Sprüngli for end year 2025. The report starts with a brief overview of the company and its history in the industry. Following, the complete breakdown of Lindt’s business strategy throughout the years, going over our prevision of how the forward-looking strategy of the firm could look like, considering the industry and the company’s competitors and their dynamics. It is followed by a deep dive into Lindt’s financials and company structure, where the company’s sales, profitability, capital structure and management efficiency are contrasted with those of its competitors. On to the valuation section, the report goes over the assumptions behind our analysis, their explanation and respective effects on the future financial statements of the firm, from 2024 to 2034. Using this data, we conducted various methodologies to determine Lindt's intrinsic value, encompassing the calculation of the Weighted Average Cost of Capital (WACC) for the firm, the application of a Discounted Cash Flow (DCF) approach, a Dividend Discount Model, and a multiples-based valuation. Furthermore, a sensitivity analysis was performed to assess the influence of critical line items on projected results, thereby enhancing the robustness of the valuation process. This equity research report demonstrates the analytical rigor necessary to evaluate a leading firm in the premium chocolate industry. Thus, by combining financial modelling with strategic insights, it seeks to provide a comprehensive view of Lindt’s potential for ongoing value creation in the future.
Autores principais:Machado, Duarte
Assunto:Finance Equity research Food industry Value drivers
Ano:2025
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:This report, supported by the annexed sheets from the valuation model file, aims to provide a Market Capitalization Target for Lindt & Sprüngli for end year 2025. The report starts with a brief overview of the company and its history in the industry. Following, the complete breakdown of Lindt’s business strategy throughout the years, going over our prevision of how the forward-looking strategy of the firm could look like, considering the industry and the company’s competitors and their dynamics. It is followed by a deep dive into Lindt’s financials and company structure, where the company’s sales, profitability, capital structure and management efficiency are contrasted with those of its competitors. On to the valuation section, the report goes over the assumptions behind our analysis, their explanation and respective effects on the future financial statements of the firm, from 2024 to 2034. Using this data, we conducted various methodologies to determine Lindt's intrinsic value, encompassing the calculation of the Weighted Average Cost of Capital (WACC) for the firm, the application of a Discounted Cash Flow (DCF) approach, a Dividend Discount Model, and a multiples-based valuation. Furthermore, a sensitivity analysis was performed to assess the influence of critical line items on projected results, thereby enhancing the robustness of the valuation process. This equity research report demonstrates the analytical rigor necessary to evaluate a leading firm in the premium chocolate industry. Thus, by combining financial modelling with strategic insights, it seeks to provide a comprehensive view of Lindt’s potential for ongoing value creation in the future.