Equity valuation: The Navigator Company

Abstract

"The Navigator Company" is a paper and pulp company operating in an industry with no growth perspectives, but with few competitors. Despite this, the company does not want to be stagnated and it is trying to enter in other business areas. Based on this, the present valuation raises a high value, which is an important indicator to debt holders and investors. The present project aims to perform a firm valuation analysis of "The Navigator Company", using the discounted cash flow method to reach the fair value for each share on the December 30th of 2016. The main results show that the company's shares are priced below its fair value.