Corporate Valuation - Lanxess AG

Inhaltsverzeichnis (Table of Contents)

• Executive Summary
• Table of Content
• List of Abbreviations
• List of Figures
• List of Formulas
• List of Tables
• List of Appendices
• Introduction
• Preface/Problem Description
• Objectives
• Scope and Structure of Work
• Corporate Valuation - History and Drivers
• Preface
• Basic Valuation Principles
• Discounted Cash Flow Methods
• Entity Method
• Equity Method
• Conclusion of the DCF Method
• Multiplier Method
• Introduction to the Multiplier Method
• Methodology of the Multiplier Method
• Conclusion of the Multiplier Method
• Summary
• Company Analysis: Lanxess AG
• Preface
• History of Lanxess AG
• Product History
• Market History
• Customer and Sales Analysis
• Strategic Alliances/Partnerships
• Assessment of Earnings
• Summary
• Information Baseline and Quality
• Preface
• Financial Projections for Lanxess AG
• Assessment of Available Data and Data Quality
• Cash Flow Calculation for Lanxess AG
• WACC Calculation for Lanxess AG
• Analysis and Derivation of Peer Group
• Summary
• Valuation
• Preface
• DCF Method
• Multiplier Method
• Arkema
• BASF
• Clariant
• DSM
• Huntsman
• Rhodia
• Actual Calculation of Multiplier Method
• Results of Both Evaluation Methods/Summary
• Conclusion
• Theoretical/Practical Summary
• Recommendation
• Future Research Direction

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This assignment focuses on the valuation of the German-based chemical corporation, Lanxess AG. The authors aim to assess the company's value through two primary evaluation methods: the discounted cash flow (DCF) method and the multiplier method. This study analyzes the advantages and disadvantages of each method in practical application. The key themes of the work include: * **Corporate valuation methodology**: Applying and contrasting the DCF and multiplier methods to evaluate Lanxess AG. * **Financial analysis**: Analyzing Lanxess AG's financial performance, including cash flow, WACC, and financial projections. * **Industry analysis**: Identifying and assessing the company's competitors and the broader chemical industry landscape. * **Peer group analysis**: Selecting appropriate companies for comparison and using their financial data in the multiplier method. * **Company analysis**: Understanding Lanxess AG's history, products, market, and strategic alliances.

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: The introduction outlines the objective and scope of the work, which focuses on the valuation of Lanxess AG. It highlights the specific methods employed, namely the DCF and multiplier approaches.
• Corporate Valuation: This section explores the historical context and foundational principles of corporate valuation, including a comprehensive explanation of the DCF method. It delves into both entity and equity DCF approaches and outlines the advantages and disadvantages of the method.
• Company Analysis: This chapter examines Lanxess AG, providing details on its history, product line, market position, customer base, strategic partnerships, and earnings performance.
• Information Baseline and Quality: This section focuses on the data used for the valuation, including financial projections, data quality assessment, and calculation of cash flows and WACC. It also analyzes the selection of a relevant peer group for the multiplier method.
• Valuation: This chapter presents the valuation results based on both the DCF and multiplier methods. It includes a detailed analysis of Lanxess AG's value through various valuation techniques, utilizing data from both the company itself and its competitors.

Schlüsselwörter (Keywords)

The key concepts and terms within this text are: corporate valuation, discounted cash flow (DCF), multiplier method, Lanxess AG, chemical industry, financial analysis, peer group analysis, and company analysis. This study examines the application of various methods to evaluate the value of a company within the specific context of the chemical industry, focusing on Lanxess AG as a case study.