Abstract
The Swiss fuel industry can be characterized by its focus on the quality, innovation, and sustainability of its processes. (Roland Stulz, Stephan Tanner and René Sigg, 2011)
To illustrate this idea, SOCAR Energy Switzerland targets the distribution of high-quality fuel, the development of superior customer services, and high safety standards. (SOCAR information)
Companies are mostly investing in electromobility and the development of hydrogen fuel stations, showcasing their commitment to next-generation mobility solutions.
Switzerland has very high activity in hydrogen and fuel cell research and technology engaging around 27 million of Swiss francs in the industry. The country has adopted a motion to create a green hydrogen strategy.
Extract
[...] It's a competition map of the company environment. As it's a market-based approach, it reduces the bias of positioning and increases the accuracy of the value. The complexity of the method relies on the definition of an accurate set of companies that represent the fair value of the market. It exposes the risk of a not-comparable set that could mislead the valuation. The accuracy of the data could also be Data used and gathered for the valuation needs to be accurate, the company is exposed to a risk of hidden data or information. [...]
[...] The data were sampled for firms listed on the NYSE, ASE, and OTC markets. The sample year included and 1986. It measures the accuracy of the P/E valuation method because it compares predicted stock prices derived from the median P/E multiple of a set of comparable firms with actual stock prices. The industry classification combined with a risk factor considering the firm size and the earning growth is effective in the identification of comparable firms. However, it should not be the only lever for the selection as it doesn't enhance the valuation accuracy in comparison with a classic industry classification. [...]
[...] In the DCF model, the value of an asset is equal to the present value of its future cash flows discounted from its present value at a rate that illustrates the risk of those cash flows (L. Peter Jennergren, 2011). The model is split into several steps: 1. Forecasting of the cash flows: The cash flows generated by an investment in the future must be forecasted. In this method, the hypothesis is made about all the factors affecting the cash flow such as the growth rate, the profit margins the capital expenditures, and the changes in the working capital. 2. [...]
[...] It highlighted the strengths but also the weaknesses of the method and the refinement that can be brought to develop the analysis. b. Comparable transaction methods The comparable transaction method is often used in the valuation of a company, it's the prevalent methodology in private equity, and investment banking. It relies on the idea that the value of a company can be estimated by the price paid for similar transactions on the market, using the feedback of those operations. This is a clear market-based reference that helps to position the company in its environment. [...]
[...] He sequenced is valuation process between, the definition of an acquisition rationale, the selection of a target, the conduction of due diligence, and the definition of the synergy's costs. Then the target is evaluated, and the payment method can be decided. He proposes a relative valuation based on the comparison between the company and other competitors in the market to estimate the value of the target. In this situation, the acquisition value should be based on the synergies of the 2 methods (DCF and EBITDA) as a qualification of each other. [...]
