Business Valuation

Other valuation methods

Multiple methods Business Case Solution
Marco Vulpiani

"What I have here in my heart is like faith, but not faith.

What I have here in this room is knowledge without proof..
What I have here in my hand is like knowing but deeper
It's why I have faith"
(Marillion, Faith)

Multiple methods
Business Case
Name: Sigma S.p.A.

Industry: Engineering and Construction

Applied Method: Stock Exchange Multiples

Valuation Date: 31/12/2013

Marco Vulpiani. For information contact: mvulpiani@deloitte.it

Multiple methods
Business Case (Assumptions)
Business Plan Profit & Loss:
Profit & Loss Sigma S.p.A.
(EUR/'000)

Revenues
COGS
Personnel & General Costs
Other Costs
EBITDA

Balance Sheet Sigma S.p.A.

2013
Actual

(EUR/'000)

21,853
(15,665)
(2,753)
(578)
2,856

% EBIT

13.1%

(D&A)
(Provisions)

(1,250)
(100)

EBIT
% EBIT

(Net Financial Expenses)

EBT

1,506
6.9%

(20)
1,486

(Taxes)

(446)

Net profit

1,040

Marco Vulpiani. For information contact: mvulpiani@deloitte.it

Intangible assets
Tangible assets
Investments
Fixed Assets
Account Receivables
Inventory
(Account Payables)
Other current assets
(Other current liabilities)
Net Working Capital
(Funds)
(Staff Severance Fund)

2013
Actual
700
17,300
18,000
2,500
3,910
(6,700)
3,000
(12,100)
(9,390)
(100)
(300)

Net Invested Capital

8,210

Shareholders' Equity

6,900

Financial Debt
(Cash and Cash Equivalents)

3,000
(1,690)

Net Financial Position

1,310

Total sources

8,210
3

Multiple methods
Business Case (Comparables)
Company
Local Currency (mln)

Astaldi S.p.A.
Implenia Ag-Reg
NCC AB-B SHS
Ferrovial SA
CFE
Colas SA

Country

Italy
Switzerland
Sweden
Spain
Belgium
France

Industry

Revenues EBITDA

EBIT

Net Profit

Book Value
Equity

Building & Heavy Construct

2,325

264

212

74

555

Building & Construction

2,696

141

99

69

497

57,227

5,508

2,525

1,894

7,304

Building & Construction

7,686

3,156

708

710

6,119

Building & Heavy Construct

1,898

927

81

49

539

Building & Heavy Construct

13,036

863

406

302

2,544

Building & Heavy Construct

Marco Vulpiani. For information contact: mvulpiani@deloitte.it

Multiple methods
Business Case (Equity Side multiples)
Company
Local Currency (mln)

Market
Cap

Astaldi S.p.A.

Net Profit

Book Value
Equity

P/E

P/BV

799

74

555

10.8 x

1.4 x

Implenia Ag-Reg

1,920

69

497

27.8 x

3.9 x

NCC AB-B SHS

28,716

1,894

7,304

15.2 x

3.9 x

Ferrovial SA

17,002

710

6,119

23.9 x

2.8 x

CFE

2,708

49

539

55.3 x

5.0 x

Colas SA

4,018

302

2,544

13.3 x

1.6 x

24.4
19.6
10.8
55.3

3.1
3.3
1.4
5.0

Average
Median
Min
Max

Marco Vulpiani. For information contact: mvulpiani@deloitte.it

x
x
x
x

x
x
x
x

Multiple methods
Business Case (Asset Side multiples)
Company
Revenues EBITDA
Local Currency (mln)

Market
Cap

EBIT

NFP

Enterprise
Value

EV/Sales

EV/EBITDA

Astaldi S.p.A.

2,325

264

212

799

1,045

1,844

0.8 x

7.0 x

Implenia Ag-Reg

2,696

141

99

1,920

1,662

3,582

1.3 x

25.4 x

NCC AB-B SHS

57,227

5,508

2,525

28,716

13,996

42,712

0.7 x

7.8 x

Ferrovial SA

7,686

3,156

708

17,002

10,028

27,030

3.5 x

8.6 x

CFE

1,898

927

81

2,708

606

3,314

1.7 x

3.6 x

13,036

863

406

4,018

1,134

5,152

0.4 x

6.0 x

1.4 x
1.1 x
0.4 x
3.5 x

9.7 x
7.4 x
3.6 x
25.4 x

Colas SA
Average
Median
Min
Max

Marco Vulpiani. For information contact: mvulpiani@deloitte.it

Multiple methods
Business Case (Conclusion)
EV/Sales

EV/EBITDA

P/E

P/BV

2013

2013

2013

2013

Income Measure

21,853

2,856

1,040

6,900

Multiple

1.06x

7.37x

19.55x

3.32x

Enterprise Value

23,183

21,048

Net Financial Position

1,310

1,310

Equity Value

21,873

19,738

20,336

22,914

Sigma S.p.A.
EUR'/000

Marco Vulpiani. For information contact: mvulpiani@deloitte.it

Multiple methods
Business Case (Application of multiples)
Conclusion:
EUR/mln

21.9

19.7

Asset side
20.3

22.9

Equity side
20.3

21.9

Equity value

Marco Vulpiani. For information contact: mvulpiani@deloitte.it

Multiple methods

Thank you for Your Attention

Marco Vulpiani. For information contact: mvulpiani@deloitte.it