Publicação
Equity valuation of MTU aero engines AG
| Resumo: | This dissertation estimates the intrinsic equity value of MTU Aero Engines AG as of 31 December 2025. The objective is to assess the consistency between the company’s market price and its fundamental value using established valuation methodologies. The primary valuation approach is a free cash flow to the firm (FCFF)-based discounted cash flow (DCF) model. The analysis is grounded in standardized historical financial statements, a structured company and industry assessment, and a bottom-up financial forecast for 2025-2030. An explicit and economically consistent transition into steady state is incorporated to ensure internal coherence between growth, reinvestment, and returns on invested capital. The intrinsic valuation is complemented by relative valuation techniques, including comparable company analysis (CCA) and comparable transaction analysis (CTA), as well as a comparison with selected sell-side equity research. The DCF analysis yields an enterprise value of approximately €22.2bn and an implied equity value of about €20.7bn, corresponding to a base-case value of €384.1 per share. Sensitivity analysis with respect to the weighted average cost of capital and the terminal growth rate results in a valuation range of €349-€425 per share. Trading multiples imply equity values consistent with typical control premia and deal-specific factors. At the valuation date, the market price was below the intrinsic estimate. Overall, the results indicate that the market valuation of MTU Aero Engines AG was within the estimated fundamental range. |
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| Autores principais: | Dreizler, Fabian Niklas |
| Assunto: | Equity valuation Discounted cash flow (DCF) Free cash flow to the Firm (FCFF) Weighted average cost of capital (WACC) Aerospace industry MTU aero engines AG Relative valuation Avaliação do capital próprio Fluxo de caixa descontado (DCF) Custo médio ponderado de capital (WACC) Indústria aeroespacial Avaliação relativa |
| Ano: | 2026 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso embargado |
| Instituição associada: | Universidade Católica Portuguesa |
| Idioma: | inglês |
| Origem: | Veritati - Repositório Institucional da Universidade Católica Portuguesa |
| Resumo: | This dissertation estimates the intrinsic equity value of MTU Aero Engines AG as of 31 December 2025. The objective is to assess the consistency between the company’s market price and its fundamental value using established valuation methodologies. The primary valuation approach is a free cash flow to the firm (FCFF)-based discounted cash flow (DCF) model. The analysis is grounded in standardized historical financial statements, a structured company and industry assessment, and a bottom-up financial forecast for 2025-2030. An explicit and economically consistent transition into steady state is incorporated to ensure internal coherence between growth, reinvestment, and returns on invested capital. The intrinsic valuation is complemented by relative valuation techniques, including comparable company analysis (CCA) and comparable transaction analysis (CTA), as well as a comparison with selected sell-side equity research. The DCF analysis yields an enterprise value of approximately €22.2bn and an implied equity value of about €20.7bn, corresponding to a base-case value of €384.1 per share. Sensitivity analysis with respect to the weighted average cost of capital and the terminal growth rate results in a valuation range of €349-€425 per share. Trading multiples imply equity values consistent with typical control premia and deal-specific factors. At the valuation date, the market price was below the intrinsic estimate. Overall, the results indicate that the market valuation of MTU Aero Engines AG was within the estimated fundamental range. |
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