Equity valuation of Encavis

Abstract

This thesis evaluates Encavis AG, a leading European renewable energy producer, using Discounted Cash Flow (DCF) and relative valuation methods. The analysis incorporates industry benchmarks, financial trends, and macroeconomic forecasts to determine the company's intrinsic value. Sensitivity analysis highlights the model's dependence on assumptions, particularly the Weighted Average Cost of Capital and terminal growth rates. The DCF valuation suggests a share price of €17.29, aligned with market expectations, while relative valuation offers a range from €13.98 to €21.48. The findings support a hold recommendation, reflecting limited upside potential amid competitive pressures and stable growth prospects.