Corporate valuation: BNP Paribas case study

Abstract

There are several methods that can be used to do a precise and accurate valuation. In this project, it will be made the valuation of an international company, BNP Paribas. In order to evaluate BNP Paribas, the most recognized methods were chosen: the discounted cash flows, in firm’s optic, and the multiples. The period considered for the analysis took place between 2014 and 2020, thus requiring assumptions for future evolution of the company. The results obtained in this project points out towards the undervaluation of market price of the company. Two of the models used show a fair value per share higher than the current market value. Accordingly, there is a reasonable possibility that, in the short term, the bank's shares will appreciate. Taking into account all factors presented and data obtained, this project conclusion recommends and supports a decision of buying (or holding) shares of BNP Paribas.