Fundamental analysis of a stock: Hermès International

Details

Supervisors

Platten, Isabelle

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

enThis paper has as goal to determine the intrinsic value of Hermès International. It studies the strategic analysis, which allows to assess the company's SWOT and comprehend how it differed from its counterparts. We then proceeded to analyze the three financial statements, concluding that Hermès' financials are highly robust and far better than its competitors. Following the estimates, a Discounted Cash Flow Method was made using the Gordon Growth Model and Exit Multiple. Then, Hermès was compared to industries peers using the Relative Valuation Method. Based on these calculations, the final recommendation was to short the stock. The target price for the base case is 2,053.26€ which represents a potential gain of 13%.