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Equity valuation of Deutsche Lufthansa AG

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Resumo:This dissertation provides a commercial, financial, and valuation analysis of Europe’s leading airline group, Deutsche Lufthansa AG. The core of the dissertation focuses on valuing Lufthansa using two intrinsic valuation approaches: the classic DCF method and the APV method, along with a relative valuation approach using trading multiples. The valuation is conducted as of May 31, 2024, yielding a target share price of EUR 9.41, representing a 38.18% premium over Lufthansa’s share price on May 15. This valuation is premised on Lufthansa leveraging its leading market position to continue its recovery following the challenging pandemic years. The analysis concludes that Lufthansa is well-positioned across its three main business segments – passenger airlines, logistics, and MRO – with industry growth projections for all three segments indicating strong revenue potential. The critical challenge for Lufthansa will be maintaining cost control in a highly competitive market environment. This analysis is compared with two equity research reports from Alpha Value and Barclays, which similarly present positive outlooks with target share prices of EUR 8.48 and EUR 9.08, respectively. These reports confirm the overall BUY recommendation derived from this dissertation. The market currently undervalues Lufthansa’s stock, likely due to recent headwinds, including significant strikes in early 2024. However, the positive long-term growth prospects underscore a substantial upside potential for investors.
Autores principais:Peter, Florian
Assunto:Lufthansa Passenger airlines Air freight Maintenance repair and overhaul (MRO) Equity valuation Firm valuation Discounted cash flow Adjusted present value Relative valuation Companhias aéreas de passageiros Carga aérea Manutenção Reparo e revisão (MRO) Avaliação patrimonial Avaliação da empresa Fluxo de caixa descontado Valor presente ajustado Avaliação relativa
Ano:2024
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Católica Portuguesa
Idioma:inglês
Origem:Veritati - Repositório Institucional da Universidade Católica Portuguesa
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author Peter, Florian
author_facet Peter, Florian
author_role author
contributor_name_str_mv Martins, Tudela
Veritati
country_str PT
creators_json_txt [{\"Person.name\":\"Peter, Florian\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Martins, Tudela
Veritati
datacite.creators.creator.creatorName.fl_str_mv Peter, Florian
datacite.date.Accepted.fl_str_mv 2024-06-25T00:00:00Z
datacite.date.available.fl_str_mv 2024-10-01T15:44:59Z
datacite.date.embargoed.fl_str_mv 2024-10-01T15:44:59Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Lufthansa
Passenger airlines
Air freight
Maintenance repair and overhaul (MRO)
Equity valuation
Firm valuation
Discounted cash flow
Adjusted present value
Relative valuation
Companhias aéreas de passageiros
Carga aérea
Manutenção
Reparo e revisão (MRO)
Avaliação patrimonial
Avaliação da empresa
Fluxo de caixa descontado
Valor presente ajustado
Avaliação relativa
datacite.titles.title.fl_str_mv Equity valuation of Deutsche Lufthansa AG
Valorização patrimonial da Lufthansa AG
dc.contributor.none.fl_str_mv Martins, Tudela
Veritati
dc.creator.none.fl_str_mv Peter, Florian
dc.date.Accepted.fl_str_mv 2024-06-25T00:00:00Z
dc.date.available.fl_str_mv 2024-10-01T15:44:59Z
dc.date.embargoed.fl_str_mv 2024-10-01T15:44:59Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10400.14/46810
dc.language.none.fl_str_mv eng
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Lufthansa
Passenger airlines
Air freight
Maintenance repair and overhaul (MRO)
Equity valuation
Firm valuation
Discounted cash flow
Adjusted present value
Relative valuation
Companhias aéreas de passageiros
Carga aérea
Manutenção
Reparo e revisão (MRO)
Avaliação patrimonial
Avaliação da empresa
Fluxo de caixa descontado
Valor presente ajustado
Avaliação relativa
dc.title.fl_str_mv Equity valuation of Deutsche Lufthansa AG
Valorização patrimonial da Lufthansa AG
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_bdcc
description This dissertation provides a commercial, financial, and valuation analysis of Europe’s leading airline group, Deutsche Lufthansa AG. The core of the dissertation focuses on valuing Lufthansa using two intrinsic valuation approaches: the classic DCF method and the APV method, along with a relative valuation approach using trading multiples. The valuation is conducted as of May 31, 2024, yielding a target share price of EUR 9.41, representing a 38.18% premium over Lufthansa’s share price on May 15. This valuation is premised on Lufthansa leveraging its leading market position to continue its recovery following the challenging pandemic years. The analysis concludes that Lufthansa is well-positioned across its three main business segments – passenger airlines, logistics, and MRO – with industry growth projections for all three segments indicating strong revenue potential. The critical challenge for Lufthansa will be maintaining cost control in a highly competitive market environment. This analysis is compared with two equity research reports from Alpha Value and Barclays, which similarly present positive outlooks with target share prices of EUR 8.48 and EUR 9.08, respectively. These reports confirm the overall BUY recommendation derived from this dissertation. The market currently undervalues Lufthansa’s stock, likely due to recent headwinds, including significant strikes in early 2024. However, the positive long-term growth prospects underscore a substantial upside potential for investors.
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inst_facet_str urn:organizationAcronym:ucp{{{_:::_}}}Universidade Católica Portuguesa
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organization_str_mv urn:organizationAcronym:ucp
person_str_mv Peter, Florian
publishDate 2024
repo_facet_str urn:repositoryAcronym:veritati{{{_:::_}}}Veritati - Repositório Institucional da Universidade Católica Portuguesa
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spelling engpt_PTThis dissertation provides a commercial, financial, and valuation analysis of Europe’s leading airline group, Deutsche Lufthansa AG. The core of the dissertation focuses on valuing Lufthansa using two intrinsic valuation approaches: the classic DCF method and the APV method, along with a relative valuation approach using trading multiples. The valuation is conducted as of May 31, 2024, yielding a target share price of EUR 9.41, representing a 38.18% premium over Lufthansa’s share price on May 15. This valuation is premised on Lufthansa leveraging its leading market position to continue its recovery following the challenging pandemic years. The analysis concludes that Lufthansa is well-positioned across its three main business segments – passenger airlines, logistics, and MRO – with industry growth projections for all three segments indicating strong revenue potential. The critical challenge for Lufthansa will be maintaining cost control in a highly competitive market environment. This analysis is compared with two equity research reports from Alpha Value and Barclays, which similarly present positive outlooks with target share prices of EUR 8.48 and EUR 9.08, respectively. These reports confirm the overall BUY recommendation derived from this dissertation. The market currently undervalues Lufthansa’s stock, likely due to recent headwinds, including significant strikes in early 2024. However, the positive long-term growth prospects underscore a substantial upside potential for investors.application/pdfpt_PTEquity valuation of Deutsche Lufthansa AGAlternativeTitlept_PTValorização patrimonial da Lufthansa AGPeter, FlorianMartins, TudelaHostingInstitutionOrganizationalVeritatie-mailmailto:repositorio@ucp.ptrepositorio@ucp.ptURNurn:tid:2036643612024-10-01T15:44:59Z2024-06-252024-05-312024-06-25T00:00:00ZHandlehttp://hdl.handle.net/10400.14/46810http://purl.org/coar/access_right/c_abf2open accessLufthansaPassenger airlinesAir freightMaintenance repair and overhaul (MRO)Equity valuationFirm valuationDiscounted cash flowAdjusted present valueRelative valuationCompanhias aéreas de passageirosCarga aéreaManutençãoReparo e revisão (MRO)Avaliação patrimonialAvaliação da empresaFluxo de caixa descontadoValor presente ajustadoAvaliação relativa847197 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesishttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ucp.pt/bitstreams/f3c95cc0-cb95-40fe-88af-f3e6098e926b/download
spellingShingle Equity valuation of Deutsche Lufthansa AG
Peter, Florian
Lufthansa
Passenger airlines
Air freight
Maintenance repair and overhaul (MRO)
Equity valuation
Firm valuation
Discounted cash flow
Adjusted present value
Relative valuation
Companhias aéreas de passageiros
Carga aérea
Manutenção
Reparo e revisão (MRO)
Avaliação patrimonial
Avaliação da empresa
Fluxo de caixa descontado
Valor presente ajustado
Avaliação relativa
status SINGLETON
subject.fl_str_mv Lufthansa
Passenger airlines
Air freight
Maintenance repair and overhaul (MRO)
Equity valuation
Firm valuation
Discounted cash flow
Adjusted present value
Relative valuation
Companhias aéreas de passageiros
Carga aérea
Manutenção
Reparo e revisão (MRO)
Avaliação patrimonial
Avaliação da empresa
Fluxo de caixa descontado
Valor presente ajustado
Avaliação relativa
title Equity valuation of Deutsche Lufthansa AG
title_full Equity valuation of Deutsche Lufthansa AG
title_fullStr Equity valuation of Deutsche Lufthansa AG
title_full_unstemmed Equity valuation of Deutsche Lufthansa AG
title_short Equity valuation of Deutsche Lufthansa AG
title_sort Equity valuation of Deutsche Lufthansa AG
topic Lufthansa
Passenger airlines
Air freight
Maintenance repair and overhaul (MRO)
Equity valuation
Firm valuation
Discounted cash flow
Adjusted present value
Relative valuation
Companhias aéreas de passageiros
Carga aérea
Manutenção
Reparo e revisão (MRO)
Avaliação patrimonial
Avaliação da empresa
Fluxo de caixa descontado
Valor presente ajustado
Avaliação relativa
topic_facet Lufthansa
Passenger airlines
Air freight
Maintenance repair and overhaul (MRO)
Equity valuation
Firm valuation
Discounted cash flow
Adjusted present value
Relative valuation
Companhias aéreas de passageiros
Carga aérea
Manutenção
Reparo e revisão (MRO)
Avaliação patrimonial
Avaliação da empresa
Fluxo de caixa descontado
Valor presente ajustado
Avaliação relativa
url http://hdl.handle.net/10400.14/46810
visible 1