Valuation of Pegas Nonwovens

The thesis performs valuation of Pegas Nonwovens, successful Czech producer of nonwoven textile with production in the Czech Republic and Egypt, listed at the Prague Stock Exchange since 2006. The valuation date is 31/12 2014 and the valuation objective is providing transaction valuation for hypothetical minority investor. The thesis presents comparison of modeled valuation (FCFF DCF valuation) with stock exchange valuation. This shows that at the valuation date there was a significant difference between modeled price of 883 CZK per share and actual market price of 639 CZK per share, not supporting the efficiency of stock market. With the lag of 8 months the market price moved to the modeled target price. In addition, the thesis shows an approach to determine the DCF model for a company with exposure in two distinct countries (Czech Republic and Egypt). The strategic analysis of the Company provides, besides understanding of the key drivers for the CF projection, conceptual model of the dynamics in the industry of the nonwovens producers and a case study of successful yet not widely known Czech company.