Valuation of a company, Levantina Ingeniería y Construcción S.L.

Abstract

This final thesis is a valuation of a company project. The initial part of the project will contain a synthesis of all the valuation methods that are more commonly used, using with references from the authors, their opinions, advantages and disadvantages for each valuation method. Then, the valuation process for the company starts in the thesis, for this, the sector of the company (the construction sector) is introduced, the growth of the sector and the lately evolution. Also, the evolution of the company that is going to be valuated, this is brief but important 9to place the reader in the phase of the business cycle that the company is facing. Several methods of valuation will be applied, described and explained with a conclusion about the differences between them. Finally, a peer analysis to locate the company in terms of competitors in her sector and compare. With the structure above explained, the project valuates a non listed company in the construction sector. In spite of having obtained a value through the discounted cash flow method, it is also obtained through the comparable multiples method, to obtain a comparison between methodologies and also with other companies from the same sector. Finally, the conclusions are presented, arguing the results obtained. The objective, therefore, is to obtain the value of Levantina Ingeniería y Construcción, S.L, using the discounted cash flow method, taking into account the evolution of the sector, the company's business model and its economic-financial analysis.