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Public company valuation: BAE systems PLC

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Resumo:This thesis evaluates whether the market valuation of BAE Systems plc can be rationalised through a DCF and comparable company analysis, as of 29th September 2025. The findings suggest that BAE Systems is modestly undervalued relative to its current market price, supported by strong cash flow generation, margin expansion, and a record order backlog. The DCF model, implies an equity value of £78.4bn (£26.28 per share), while the comparable analysis yields £26.7 per share. Both methods indicate sustained value creation driven by diversified segment growth and resilient defence market dynamics.
Autores principais:Guemuessoy, Oemer
Assunto:Valuation Defence Discounted cash flow Comparable company analysis
Ano:2026
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 thesis evaluates whether the market valuation of BAE Systems plc can be rationalised through a DCF and comparable company analysis, as of 29th September 2025. The findings suggest that BAE Systems is modestly undervalued relative to its current market price, supported by strong cash flow generation, margin expansion, and a record order backlog. The DCF model, implies an equity value of £78.4bn (£26.28 per share), while the comparable analysis yields £26.7 per share. Both methods indicate sustained value creation driven by diversified segment growth and resilient defence market dynamics.