Market share as a key sensitive factor to Unilever-s profitability

Abstract

This Equity Research Report intends to reach the fair share price of Unilever (ULVR:LN), one of the largest consumer goods companies in the world, for December 2022 and compare with the current price. For this purpose, a deep analysis of the company and the industry was made, namely the market trends and the company's strategies to grow in the next years. Based on that research and expectations about the future, the assumptions were considered in the Discounted Cash Flow (DCF) method. Furthermore, a scenario and sensitivity analysis were performed to assess the impact on the share price, in uncertainty assumptions, namely the market shares of each segment. Based on the model, the fair price is 52.3€ and the strategic recommendation for investors is to buy their position.