Valuation of Beyond Meat
| Thesis title: | Valuation of Beyond Meat |
|---|---|
| Author: | Kysucký, Tibor |
| Thesis type: | Diploma thesis |
| Supervisor: | Smrčka, Luboš |
| Opponents: | Schönfeld, Jaroslav |
| Thesis language: | English |
| Abstract: | The main goal of the thesis is to value Beyond Meat as of 31/12/2019. Beyond Meat operates in the niche plant-based meat alternatives market.The thesis consists of two main parts. In the first part, fundamental concepts and challenges associated with the valuation of growth company are explained. The second part focuses on the strategic analysis and valuation supplemented by theoretical concepts.Valuation of Beyond Meat is conducted based on a discounted cash flow model and relative valuation approach. The discounted cash flow model estimated price of USD 60.1 per share as of 31/12/2019. The relative valuation was conducted based on trading multiples and precedent transactions by applying enterprise value-to-sales multiple in 2020, resulting in USD 49.1 and USD 40.1 per share, respectively. Even after stretching the assumptions, both approaches estimated that Beyond Meat was overvalued as of 31/12/2019 |
| Keywords: | DCF model; Beyond Meat; Valuation; Trading Multiples; Precedent Transactions |
| Thesis title: | Valuation of Beyond Meat |
|---|---|
| Author: | Kysucký, Tibor |
| Thesis type: | Diplomová práce |
| Supervisor: | Smrčka, Luboš |
| Opponents: | Schönfeld, Jaroslav |
| Thesis language: | English |
| Abstract: | The main goal of the thesis is to value Beyond Meat as of 31/12/2019. Beyond Meat operates in the niche plant-based meat alternatives market.The thesis consists of two main parts. In the first part, fundamental concepts and challenges associated with the valuation of growth company are explained. The second part focuses on the strategic analysis and valuation supplemented by theoretical concepts.Valuation of Beyond Meat is conducted based on a discounted cash flow model and relative valuation approach. The discounted cash flow model estimated price of USD 60.1 per share as of 31/12/2019. The relative valuation was conducted based on trading multiples and precedent transactions by applying enterprise value-to-sales multiple in 2020, resulting in USD 49.1 and USD 40.1 per share, respectively. Even after stretching the assumptions, both approaches estimated that Beyond Meat was overvalued as of 31/12/2019. |
| Keywords: | Trading Multiples; Beyond Meat; Valuation; DCF model; Precedent Transactions |
Information about study
| Study programme: | Ekonomika a management/International Management |
|---|---|
| Type of study programme: | Magisterský studijní program |
| Assigned degree: | Ing. |
| Institutions assigning academic degree: | Vysoká škola ekonomická v Praze |
| Faculty: | Faculty of Business Administration |
| Department: | Department of strategy |
Information on submission and defense
| Date of assignment: | 2. 10. 2019 |
|---|---|
| Date of submission: | 11. 5. 2020 |
| Date of defense: | 5. 6. 2020 |
| Identifier in the InSIS system: | https://insis.vse.cz/zp/72117/podrobnosti |