Hering S.A. Valuation

Authors

DOI:

https://doi.org/10.13058/raep.2017.v18n2.545

Keywords:

Teaching case, Firm valuation, Discounted cash flow, Hering

Abstract

The case studies real investment decisions and firm valuation. Hering S.A is a textile and retail clothing company listed in BM&FBovespa stock exchange. This case, based on newspaper articles and public information detailed in the text, (i) enables the students to analyze the real investment decisions taken by investors that bought Hering´s stocks and at the same time (ii) challenges the students to formulate assumptions to value the firm based on public information such as: financial statements, macroeconomic indicators and other market variables. The result obtained by the students can be confronted in the classroom for further discussion about (i) the assumptions used and (ii) the stock prices calculated. Such discussion can explicit the biases arising from the motivation of the evaluators considering that different assumptions may have been adopted based on different interests (buyer’s, seller’s, etc.).

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Author Biographies

Roberto Fukuzawa, Fundação Instituto de Administração, São Paulo, SP

Pós Graduação em Administração de Empresas pela FIA.

Áreas de interesse em pesquisa: Valuation.

Ricardo Goulart Serra, Fundação Escola de Comércio Álvares Penteado, São Paulo, SP

Pós-doutor em Contabilidade pela FEA/USP.

Áreas de interesse em pesquisa: Valuation e Finanças Corporativas.

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Published

2017-07-06

How to Cite

Fukuzawa, R., & Serra, R. G. (2017). Hering S.A. Valuation. Administração: Ensino E Pesquisa, 18(2), 375–415. https://doi.org/10.13058/raep.2017.v18n2.545

Issue

Vol. 18 No. 2 (2017): Maio-Agosto

Section

Teaching Cases

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