Valorização das ações da Magazine Luiza: Valuation pelo fluxo de caixa descontado captaria?

Abstract

This paper aims to estimate, by conducting two evaluations in different past periods, using the discounted cash flow method, the value of the brazilian retail company Magazine Luiza. Thus is was tried to verify, if the value found in the first evaluation, using the data available until the end of january 2016, by means of this method, could indicate a possible increase in the stock price in the Brasil, Bolsa, Balcão (B3), as in fact occurred since february 2016. Subsequently, it was sought to identify by means of a second evaluation, with the data available until the end of december 2018, if the upward trajectory of the share price would reflect the new value found for the company. It was chosen to analyze the value of this company due to the rise in the price of its shares in the beforementioned period. Regarding the methodological aspects, this study might be remarked as a case study which comprises a descriptive research with quantitative approach. The results indicated in the first evaluation, that the share price was undervalued and there was a significant margin for future appreciation, while according to the second evaluation, the share prices were overvalued. The main conclusion of this study is that the Discounted Cash Flow model made it possible to predict the stock price trend, since the market value of the company always tends to adjust to its fair value in the long run.