|
Abstract:
|
This report exhibits conducts a detailed analysis of WEG S.A., a leading entity in the
global electric-electronic equipment industry, using the discounted cash flow model to
evaluate its fair market value. WEG operates with manufacturing facilities in 12 countries
and has a commercial presence in over 135 countries, indicating a broad operational
scope and considerable influence in various sectors such as infrastructure, steel, pulp
and paper, oil and gas, mining, among others. The firm employs over 36,900 individuals
globally, demonstrating its commitment to innovation and the development of solutions
in line with current trends in energy efficiency, renewable energy, and electric mobility.
This study thoroughly examines WEG’s business model, competitive environment, and
industry dynamics, employing analyses to forecast future cash flows based on historic
performance and establish a precise valuation. The fair value found discounting future
cash flows to present value using the DCF model was 42,75 R$, presenting a 15,9% of
upside to the closing price found in February 27th of 2024. |
