| Summary: | Novabase is the Portuguese leader in the Information Technology industry and it is present in more than 35 countries. This company operates in two business segments – Business Solutions and Venture Capital – and is listed on the Euronext Lisbon stock exchange. The aim of this thesis is to determine the value of Novabase’ shares. The valuation was based on three valuation models: Discounted Cash Flow (DCF), through the Free Cash Flow to the Firm; Economic Value Added (EVA); and relative valuation (multiples and comparables). To better frame this valuation was made an analysis of the company and its main competitors, an analysis of the macroeconomic environment and an analysis of the Novabase’s main industry. The valuation using the DCF model resulted in a share value of 1,87 euros, while through the EVA model was obtained a value per share of 2,10 euros. The relative valuation presented a lower value for the Novabase’ shares, resulting in an average share price of 1,83 euros. A sensitivity analysis for the DCF and EVA was made to assess the impact of the main assumptions, such as perpetual growth rate and discount rate used, in the share values obtained. Lastly, the results of the valuation were compared to the market values at the end of 2017 and at the end of August of 2018 (3,05 euros and 2,72 euros, respectively); and to the valuation recommendations and values given by BPI and IM Valores SV (2,75 euros and 2,50 euros, respectively). The final recommendation given is Sell.
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