Company Valuation Methods - Applus Case

Abstract

Company valuation is a fundamental process in the world of finance and business. It involves determining the value of a company at a given point in time, with the purpose of making informed decisions about business transactions such as M&A, IPO, bond issuances and others. The relevance of this topic lies in its impact on strategic and financial decision-making for companies and investors, as well as other stakeholders. In this research project, we will explore the two primary methods for valuing a company: intrinsic valuation and relative valuation. We will examine their key advantages and disadvantages, and ultimately conduct a practical valuation of Applus, a company currently involved in a takeover bid with two private equity firms competing to acquire it.