Bibliographic citations
Pariona, A., Machacuay, D., Quispe, D., Alegría, W., Fernández, H. (2024). Valorización de las empresas: Archer Daniels Midland y Casa Grande [Pontificia Universidad Católica del Perú]. http://hdl.handle.net/20.500.12404/26931
Pariona, A., Machacuay, D., Quispe, D., Alegría, W., Fernández, H. Valorización de las empresas: Archer Daniels Midland y Casa Grande []. PE: Pontificia Universidad Católica del Perú; 2024. http://hdl.handle.net/20.500.12404/26931
@mastersthesis{sunedu/3595997,
title = "Valorización de las empresas: Archer Daniels Midland y Casa Grande",
author = "Fernández Rivera, Henry Gabriel",
publisher = "Pontificia Universidad Católica del Perú",
year = "2024"
}
The following research aimed to conduct a valuation of two companies from different countries, namely the Peruvian company Casa Grande S.A.A. and the American company Archer Daniels Midland (ADM). To perform the valuation of both companies, an analysis was carried out on external factors that could influence them, including various macroeconomic variables, trends, and competitors. Additionally, internal factors of both companies were examined with the objective of identifying strengths and changes in the business that could impact the generated cash flows of the evaluated companies. To value each of the companies, the discounted cash flow (DCF) method was employed, as this method captures growth expectations, risks, and the potential value that the company could generate in the long term. To determine the discount rate for the cash flows, the weighted average cost of capital (WACC) of each company was utilized. The results of the valuation indicated that, under the conditions at the close of 2022, the calculated per-share value of Casa Grande is 12.33% below the closing price of 2022; therefore, it is recommended to take a short position on the stock. On the other hand, regarding Archer Daniels Midland (ADM), it was determined that the calculated per-share value is 12.6% below the closing price of 2022; thus, similar to the previous company, it is recommended to take a short position on the stock. Finally, restructuring proposals were presented for both companies. For Casa Grande, expanding the blueberry business was proposed, as it was validated by experts that there is a potential for value creation in this line of business. It was determined that expanding the blueberry business could lead to a 4.9% increase in the share price. For ADM, a share repurchase of 100 million shares was proposed as a strategy to restructure the company, resulting in a 19% reduction in the total value of shares in circulation and a 68% increase in the per-share value.
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