Intrinsic Valuation of a Public Firm : SIG Group
This thesis aims to develop a valuation methodology to determine the value of the company SIG Group, leveraging the Monte Carlo simulation method integrated into the discounted cash flow (DCF) model. The valuation process has become crucial in light of SIG Group's stable profit margin in recent years and the anticipated intensification of competition in the aseptic packaging industry.
The objective of this thesis is to provide a comprehensive understanding of the reasons and motivations behind implementing a valuation process for SIG Group. Additionally, the thesis defines and specifies commonly used valuation methods, such as the Discounted Cash Flow, tailored to similar companies and sectors. It emphasizes that the choice of valuation method can significantly impact the resulting value of the company.
Throughout the thesis, essential tools necessary to comprehend the economic situation, sector insights, and performance indicators will be provided. Furthermore, a comprehensive analysis of the company's economic and financial information will be conducted, considering its influence on the valuation process. These components together form the basis for evaluating the company's value effectively.
The determination of SIG Group's value is a critical factor that drives investment allocation decisions. By employing the discounted cash flow model, this project aims to ascertain the final value of the company's shares, enabling stakeholders to make informed decisions on whether to buy, hold, or sell.
Key components of the valuation methodology include incorporating the Monte Carlo simulation method, which provides a probabilistic framework to account for uncertainty and risk in financial projections. This approach allows for a more comprehensive and robust analysis, capturing the potential variability of future cash flows and considering different scenarios.
In conclusion, this thesis proposes a comprehensive valuation methodology that combines the discounted cash flow model with Monte Carlo simulation to determine the value of SIG Group. The insights and analysis derived from this process will equip stakeholders with the necessary information to make well-informed investment decisions, considering the evolving competitive landscape and SIG Group's financial performance.
#SIGGroup #MonteCarloSimulation #DiscountedCashFlow #DCFModel #AsepticPackagingIndustry