Strategic and financial analysis and valuation of the Airbus Group

Abstract

The main purpose of this thesis was to carry out a calculation of the theoretical value of the Airbus Group on the date 31.12.2017, and therefore, the theoretical price one Airbus share in order to compare it to the closing price at the Stock Exchange and conclude if the company shares were under-, over- or equal valued at the end of the year 2017. The first step on the valuation process was the strategic analysis, which showed the non-financial value drivers of the company, in other words, the external and internal factors that affect the Airbus Group and its competitive position. The second step was the financial statements analysis that displayed the company’s financial value drivers: it provided an insight of the financial development of the company in the past five years and allowed the comparison to its main competitors in the same industry. After finding and putting the financial and non -financial value drivers together, the final step was the valuation of the company. It has been performed through the Discounted Cash Flows Method with the WACC as discounting rate. At the end of the valuation process, we concluded that the company was on 31 st December 2017 undervalued at the Stock Exchange because the shares closing market price was 83.4€ and through our valuation we found out that the theoretical market price should have been 131.94€.