Corporate Evaluation of Fielmann AG

Document from the year 2012 in the subject Business economics - Business Management Corporate Governance grade: 13 University of Applied Sciences Essen language: English abstract: There are various occasions for a corporate evaluation: purchase sale privatization IPO evaluation of growth options preparation of business restructurings and much more.This work's occasion is to determine the corporate value of Fielmann AG from a buyer's point of view. Somebody wants to invest in Fielmann AG to optimize his own portfolio.The first part of this assignment describes the framework of a corporate evaluation. After this introducing part the common methods and approaches of a corporate evaluation emphasizing the respective advantages and disadvantages is discussed. The second part applies selected methods to the evaluation of Fielmann AG in practice: The discounted cash flow methods (entity and equity approach) and the multiplier method.The date of evaluation is December 31st 2011 all data are accessible to the public (mostly via Bloomberg) or based on own assumptions. The applied discounted cash flow methods of corporate evaluation result in a valuation range between 2923.941 and 2999.810 million EUR. The multiplier method determines range for the corporate value from 1429.049 million up to 1547258 million EUR. Therefore for an investor it is fair to pay a price between 34.02 and 71.42 EUR per share.It is hard to find an adequate peer group for Fielmann AG because there is no other optician listed which is comparable to Fielmann AG. Therefore the authors recommend the DCF-results an adequate value. The DCF approaches deliver a final result between 2923 up to 3000 million EUR (69.62 up to 71.42 € per share) on 31st December 2011 for Fielmann AG.