Business Valuation Assignment outline
Congratulations, you've been hired by investment fund Call&Put. Your boss has asked you to cover Adidas AG, a multinational company based in Herzogenaurach (Germany) and active in the production of footwear, apparel and other sporting goods.
The Excel file "Business Valuation Assignment - Multiples" shows data for 50 international companies. Among the different sheets you will find information about multiples, profitability, financial structure and expected growth. Identify the best Adidas panel of comparables based on industry, financial criteria and geographic diversification. Analyze each point and explain the rationale for including or excluding a company from the "best-fit panel". Justify in detail the choices you made to include/exclude at least 8 companies (4 included and 4 excluded).
Once you have identified the best companies, build the panel and compute the extrinsic value of Adidas stock.
Hint: many companies, although in the same industry, have very different business models. You can gather information on the company's business model from the company's website or annual reports.
You will be evaluated on:
- Fairness of the logic followed to include and exclude a company from the panel
- Correctness of the steps followed to calculate the Adidas stock price
Good work!
A E F G H H | | B D Adidas Peer Analysis The following Excel spreadsheets show data from Adidas' possible comparables. Identify the best panel of comparables based on industry, financial criteria and geographic diversification. Analyze each point and explain the rationale for including or excluding a company from the "best-fit panel". Once you have identified the best companies, build the panel with the multiples provided in the "Peers-Valuation" sheet. Hint: many companies, although in the same industry, have very different business models. You can gather information on the company's business model from the company's website or annual reports. Adidas AG Country Exchange Industry Sector Ticker Currency Germany XETRA Textiles & Apparel Consumer Discretionary ADS United States dollar RIC Company Name Country Exchange Industry Sector Market Cap PUMG.DE Germany XETRA 13,089.01 Puma SE Industria de Diseno Textil SA ITX.MC BOLSA DE MADRID Spain Sweden HM.ST H&M Hennes & Mauritz AB Enterprise Value 13,804.28 68,035.30 26,182.59 14,016.82 201852.1911 Textiles & Apparel Specialty Retailers Specialty Retailers Specialty Retailers Textiles & Apparel Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary 72,162.80 22,018.84 14,860.20 207529.1916 NASDAQ STOCKHOLM AB XETRA NEW YORK STOCK EXCHANGE, INC. ZALG.DE Zalando SE Germany United States of America NKE.N Nike Inc Currency United States dollar RIC Company Name Country Exchange Industry Sector Market Cap PUMG.DE XETRA ITX.MC HM.ST BOLSA DE MADRID NASDAQ STOCKHOLM AB XETRA ZALG.DE NKE.N NEW YORK STOCK EXCHANGE, INC. EURONEXT - EURONEXT PARIS Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary LVMH.PA BOSSN.DE XETRA PRTP.PA EURONEXT - EURONEXT PARIS BRBY.L ESLX.PA Puma SE Germany Industria de Diseno Textil SA Spain H&M Hennes & Mauritz AB Sweden Zalando SE Germany Nike Inc United States of America LVMH Moet Hennessy Louis Vuitton SE France Hugo Boss AG Germany Kering SA France Burberry Group PLC United Kingdom EssilorLuxottica SA France Compagnie Financiere Richemont SA Switzerland Moncler SpA Italy Associated British Foods PLC United Kingdom Foot Locker Inc United States of America Under Armour Inc United States of America Next PLC United Kingdom Marks and Spencer Group PLC United Kingdom Hermes International SCA France TJX Companies Inc United States of America Pandora A/S Denmark LONDON STOCK EXCHANGE EURONEXT - EURONEXT PARIS SIX SWISS EXCHANGE Textiles & Apparel Specialty Retailers Specialty Retailers Specialty Retailers Textiles & Apparel Textiles & Apparel Textiles & Apparel Specialty Retailers Specialty Retailers Textiles & Apparel Textiles & Apparel Textiles & Apparel Food & Tobacco Specialty Retailers Textiles & Apparel Specialty Retailers Specialty Retailers Textiles & Apparel Diversified Retail Textiles & Apparel Enterprise Value 13,804.28 68,035.30 26,182.59 14,016.82 201852.1916 385,177.31 4,469.70 89,153.89 9,194.36 92,476.93 66,400.10 16,015.26 20,235.03 2,903.92 6,850.38 13,460.29 8,265.45 136,751.76 71,611.33 10,054.20 13,089.01 72,162.80 22,018.84 14,860.20 207529.1916 357,890.24 3,790.15 83,585.83 8,893.72 81,080.80 66,085.82 15,508.26 18,306.81 3,245.92 7,857.30 11,380.10 4,262.31 142,587.01 74,483.33 9,660.64 CFR.S MONC.MI ABF.L FL.N UAAN Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Staples Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Staples Consumer Discretionary Consumer Discretionary Consumer Discretionary ELECTRONIC SHARE MARKET LONDON STOCK EXCHANGE NEW YORK STOCK EXCHANGE, INC. NEW YORK STOCK EXCHANGE, INC. LONDON STOCK EXCHANGE LONDON STOCK EXCHANGE EURONEXT - EURONEXT PARIS NEW YORK STOCK EXCHANGE, INC. NASDAQ COPENHAGEN A/S NXT.L MKS.L HRMS.PA TJX.N PNDORA.CO ADAS Netherlands JMT.LS Portugal Germany EURONEXT - EURONEXT AMSTERDAM OPERADOR DE MERCADO IBERICO DE ENERGIA - PORTUGAL XETRA Consumer Staples Consumer Staples Consumer Staples Consumer Staples HNKG_p.DE DANO.PA France WN.N United States of America OREP.PA France EURONEXT - EURONEXT PARIS NEW YORK STOCK EXCHANGE, INC. EURONEXT - EURONEXT PARIS EURONEXT - EURONEXT PARIS NEW YORK STOCK EXCHANGE, INC. NEW YORK STOCK EXCHANGE, INC. PERP PA Koninklijke Ahold Delhaize NV Jeronimo Martins SGPS SA Henkel AG & Co KGaA Danone SA Nordstrom Inc L'Oreal SA Pernod Ricard SA HanesBrands Inc Skechers USA Inc Delivery Hero SE Columbia Sportswear Co Deckers Outdoor Corp boohoo group plc Salvatore Ferragamo SpA France HBI.N United States of America United States of America Food & Drug Retailing Food & Drug Retailing Chemicals Food & Tobacco Diversified Retail I & Household Products & Beverages Textiles & Apparel Textiles & Apparel Software & IT Services Textiles & Apparel Textiles & Apparel Specialty Retailers Textiles & Apparel Textiles & Apparel 32,724.20 13,830.93 30,098.35 41,034.16 4,283.04 215,342.89 55,088.20 5,365.72 6,174.73 12,507.52 6,041.66 7,932.12 1,656.77 3,125.78 9,230.90 Consumer Discretionary Consumer Staples Consumer Staples Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary 47,813.17 15,854.28 31,173.26 52,464.92 6,814.04 218,653.69 64,009.40 8,180.53 5,904.21 13,866.43 5,147.11 6,933.86 1,599.04 3,472.09 8,892.12 SKX.N XETRA DHER.DE COLM.OQ Germany United States of America United States of America DECK.N BOOHL United Kingdom NASDAQINGS (GLOBAL SELECT MARKET) NEW YORK STOCK EXCHANGE, INC. LONDON STOCK EXCHANGE ELECTRONIC SHARE MARKET NEW YORK STOCK EXCHANGE, INC. SFER.MI Italy Consumer Discretionary Consumer Discretionary UAAN Under Armour Inc United States of America Business Valuation Assignmentoudine Congratulations, you've been hired by investment fund Call & Put. Your boss has asked you to cover Adidas AG, a multinational company based in Herzogenaurach (Germany) and active in the production of footwear, apparel and other sporting goods. The Excel file "Business Valuation Assignment - Multiples" shows data for 50 international companies. Among the different sheets you will find information about multiples, profitability, financial structure and expectedgrowth. Identify the best Adidas panel of comparables based on industry, financial criteria and geographic diversification. Analyze each point and explain the rationale for including or excluding a company from the "best-fit panel". Justify in detail the choices you made to include/exclude at least 8 companies (4 included and 4 excluded). Once you have identified the "best companies", build the panel and compute the extrinsic value of Adidas stock. Hint: many companies, although in the same industry, have very different business models. You reports. You will be evaluated on: Fairness of the logic followed to include and exclude a company from the panel Correctness of the steps followed to calculate the Adidas stock price Good work! A E F G H H | | B D Adidas Peer Analysis The following Excel spreadsheets show data from Adidas' possible comparables. Identify the best panel of comparables based on industry, financial criteria and geographic diversification. Analyze each point and explain the rationale for including or excluding a company from the "best-fit panel". Once you have identified the best companies, build the panel with the multiples provided in the "Peers-Valuation" sheet. Hint: many companies, although in the same industry, have very different business models. You can gather information on the company's business model from the company's website or annual reports. Adidas AG Country Exchange Industry Sector Ticker Currency Germany XETRA Textiles & Apparel Consumer Discretionary ADS United States dollar RIC Company Name Country Exchange Industry Sector Market Cap PUMG.DE Germany XETRA 13,089.01 Puma SE Industria de Diseno Textil SA ITX.MC BOLSA DE MADRID Spain Sweden HM.ST H&M Hennes & Mauritz AB Enterprise Value 13,804.28 68,035.30 26,182.59 14,016.82 201852.1911 Textiles & Apparel Specialty Retailers Specialty Retailers Specialty Retailers Textiles & Apparel Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary 72,162.80 22,018.84 14,860.20 207529.1916 NASDAQ STOCKHOLM AB XETRA NEW YORK STOCK EXCHANGE, INC. ZALG.DE Zalando SE Germany United States of America NKE.N Nike Inc Currency United States dollar RIC Company Name Country Exchange Industry Sector Market Cap PUMG.DE XETRA ITX.MC HM.ST BOLSA DE MADRID NASDAQ STOCKHOLM AB XETRA ZALG.DE NKE.N NEW YORK STOCK EXCHANGE, INC. EURONEXT - EURONEXT PARIS Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary LVMH.PA BOSSN.DE XETRA PRTP.PA EURONEXT - EURONEXT PARIS BRBY.L ESLX.PA Puma SE Germany Industria de Diseno Textil SA Spain H&M Hennes & Mauritz AB Sweden Zalando SE Germany Nike Inc United States of America LVMH Moet Hennessy Louis Vuitton SE France Hugo Boss AG Germany Kering SA France Burberry Group PLC United Kingdom EssilorLuxottica SA France Compagnie Financiere Richemont SA Switzerland Moncler SpA Italy Associated British Foods PLC United Kingdom Foot Locker Inc United States of America Under Armour Inc United States of America Next PLC United Kingdom Marks and Spencer Group PLC United Kingdom Hermes International SCA France TJX Companies Inc United States of America Pandora A/S Denmark LONDON STOCK EXCHANGE EURONEXT - EURONEXT PARIS SIX SWISS EXCHANGE Textiles & Apparel Specialty Retailers Specialty Retailers Specialty Retailers Textiles & Apparel Textiles & Apparel Textiles & Apparel Specialty Retailers Specialty Retailers Textiles & Apparel Textiles & Apparel Textiles & Apparel Food & Tobacco Specialty Retailers Textiles & Apparel Specialty Retailers Specialty Retailers Textiles & Apparel Diversified Retail Textiles & Apparel Enterprise Value 13,804.28 68,035.30 26,182.59 14,016.82 201852.1916 385,177.31 4,469.70 89,153.89 9,194.36 92,476.93 66,400.10 16,015.26 20,235.03 2,903.92 6,850.38 13,460.29 8,265.45 136,751.76 71,611.33 10,054.20 13,089.01 72,162.80 22,018.84 14,860.20 207529.1916 357,890.24 3,790.15 83,585.83 8,893.72 81,080.80 66,085.82 15,508.26 18,306.81 3,245.92 7,857.30 11,380.10 4,262.31 142,587.01 74,483.33 9,660.64 CFR.S MONC.MI ABF.L FL.N UAAN Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Staples Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Staples Consumer Discretionary Consumer Discretionary Consumer Discretionary ELECTRONIC SHARE MARKET LONDON STOCK EXCHANGE NEW YORK STOCK EXCHANGE, INC. NEW YORK STOCK EXCHANGE, INC. LONDON STOCK EXCHANGE LONDON STOCK EXCHANGE EURONEXT - EURONEXT PARIS NEW YORK STOCK EXCHANGE, INC. NASDAQ COPENHAGEN A/S NXT.L MKS.L HRMS.PA TJX.N PNDORA.CO ADAS Netherlands JMT.LS Portugal Germany EURONEXT - EURONEXT AMSTERDAM OPERADOR DE MERCADO IBERICO DE ENERGIA - PORTUGAL XETRA Consumer Staples Consumer Staples Consumer Staples Consumer Staples HNKG_p.DE DANO.PA France WN.N United States of America OREP.PA France EURONEXT - EURONEXT PARIS NEW YORK STOCK EXCHANGE, INC. EURONEXT - EURONEXT PARIS EURONEXT - EURONEXT PARIS NEW YORK STOCK EXCHANGE, INC. NEW YORK STOCK EXCHANGE, INC. PERP PA Koninklijke Ahold Delhaize NV Jeronimo Martins SGPS SA Henkel AG & Co KGaA Danone SA Nordstrom Inc L'Oreal SA Pernod Ricard SA HanesBrands Inc Skechers USA Inc Delivery Hero SE Columbia Sportswear Co Deckers Outdoor Corp boohoo group plc Salvatore Ferragamo SpA France HBI.N United States of America United States of America Food & Drug Retailing Food & Drug Retailing Chemicals Food & Tobacco Diversified Retail I & Household Products & Beverages Textiles & Apparel Textiles & Apparel Software & IT Services Textiles & Apparel Textiles & Apparel Specialty Retailers Textiles & Apparel Textiles & Apparel 32,724.20 13,830.93 30,098.35 41,034.16 4,283.04 215,342.89 55,088.20 5,365.72 6,174.73 12,507.52 6,041.66 7,932.12 1,656.77 3,125.78 9,230.90 Consumer Discretionary Consumer Staples Consumer Staples Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary Consumer Discretionary 47,813.17 15,854.28 31,173.26 52,464.92 6,814.04 218,653.69 64,009.40 8,180.53 5,904.21 13,866.43 5,147.11 6,933.86 1,599.04 3,472.09 8,892.12 SKX.N XETRA DHER.DE COLM.OQ Germany United States of America United States of America DECK.N BOOHL United Kingdom NASDAQINGS (GLOBAL SELECT MARKET) NEW YORK STOCK EXCHANGE, INC. LONDON STOCK EXCHANGE ELECTRONIC SHARE MARKET NEW YORK STOCK EXCHANGE, INC. SFER.MI Italy Consumer Discretionary Consumer Discretionary UAAN Under Armour Inc United States of America Business Valuation Assignmentoudine Congratulations, you've been hired by investment fund Call & Put. Your boss has asked you to cover Adidas AG, a multinational company based in Herzogenaurach (Germany) and active in the production of footwear, apparel and other sporting goods. The Excel file "Business Valuation Assignment - Multiples" shows data for 50 international companies. Among the different sheets you will find information about multiples, profitability, financial structure and expectedgrowth. Identify the best Adidas panel of comparables based on industry, financial criteria and geographic diversification. Analyze each point and explain the rationale for including or excluding a company from the "best-fit panel". Justify in detail the choices you made to include/exclude at least 8 companies (4 included and 4 excluded). Once you have identified the "best companies", build the panel and compute the extrinsic value of Adidas stock. Hint: many companies, although in the same industry, have very different business models. You reports. You will be evaluated on: Fairness of the logic followed to include and exclude a company from the panel Correctness of the steps followed to calculate the Adidas stock price Good work
