Equity report on BMW AG

Abstract

This company report for BMW AG BAYERISCHE MOTOREN WERKE AG (BMW) uses Relative Comparable companies as well as transactions, Discounted Cash Flow and Adjusted Present Value methods employing exit multiple valuation. Three scenarios with alternating growth rates on key value drivers are introduced to reflect potential market and industry development scenarios. A BUY recommendation is derived with target price forecast of EUR 71.33, with a total expected return of 25.39% given a current share price of EUR 69.74. Sensitivity analysis was conducted in order to observe how prices per share fluctuate given different combinations of discount rates and exit multiples. Discount rates are derived from market data with their rationale being explained