| Resumo: | This work project is an equity research report on Adidas AG. The aim of the equity research is to issue a buy/hold/sell recommendation to investors by evaluating whether Adidas is currently over-or undervalued by the market. First, we did a company overview and a thorough analysis of the global sportswear industry as well as Adidas’ competitive landscape. Then, we identified and evaluated Adidas’ main business drivers, which include macroeconomic factors, sportswear industry growth drivers and the company’s marketing investments and corporate strategy. Based on these, we developed a detailed forecast by geographical segment and obtained a fair equity value for Adidas using a Discounted Cash Flow (DCF) valuation model. Our investment thesis is that the Adidas Group will experience growth by capturing the athleisure and e-commerce trends in its key markets North America and Greater China. Based on the outcome of our DCF model, which implies a fair value of EUR 304 per share compared to Adidas’ current share price of EUR 273, we issue a BUY recommendation to investors.
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