{"product_id":"corporate-valuation-of-the-e-on-ag-von-dennis-ducke-gabor-ivanyi-mark-kan","title":"Corporate Valuation of the E.ON AG","description":"\u003cp\u003eSeminar paper from the year 2008 in the subject Business economics - Investment and Finance, grade: 2,3, University of Applied Sciences Essen, language: English, abstract: The main scope of this assignment is the valuation of the E.ON AG ¿ a German based\u003c\/p\u003e\u003cp\u003eenergy corporation, with about 88.000 employees and annual sales of about 69 billion\u003c\/p\u003e\u003cp\u003eEuros. It is one of the world¿s largest investor-owned energy service firms. The core\u003c\/p\u003e\u003cp\u003eactivities of E.ON are the generation, transmission and distribution of electricity as well\u003c\/p\u003e\u003cp\u003eas the transmission, storage and sale of natural gas.\u003c\/p\u003e\u003cp\u003eFor the corporate evaluation of E.ON, the editor based his calculation on the two most\u003c\/p\u003e\u003cp\u003ecommon global evaluation approaches ¿ the discounted cash flow (DCF) and the\u003c\/p\u003e\u003cp\u003emultiplier method. The DCF method estimates the value of a company by discounting\u003c\/p\u003e\u003cp\u003eexpected cash flows in the future or determined period of time, similar to the value of an\u003c\/p\u003e\u003cp\u003einvestment. For the assessment of the company value, the entity and equity DCF\u003c\/p\u003e\u003cp\u003emethod with an assumed constant growth rate between 1.5 and 3 percent, have been\u003c\/p\u003e\u003cp\u003eutilized.\u003c\/p\u003e\u003cp\u003eFor the validation of the calculated DCF corporate values the multiplier method was\u003c\/p\u003e\u003cp\u003eexecuted as second evaluation method based on Price-Earnings, Price-Book value and\u003c\/p\u003e\u003cp\u003ePrice-Turnover ratios. For the necessary peer-group, the authors selected the other three\u003c\/p\u003e\u003cp\u003ebig players RWE, EnBW and Vattenfall, which form an oligopoly market in Germany.\u003c\/p\u003e\u003cp\u003eIncluding E.ON they own more than 70 percent of German energy infrastructure and\u003c\/p\u003e\u003cp\u003ehave a market share of about 95 percent.\u003c\/p\u003e\u003cp\u003eThe calculation of the different entity and equity based discounted cash flows and P\/E,\u003c\/p\u003e\u003cp\u003eP\/B and P\/T ratios resulted in a wide range of corporate values between 73 billion and\u003c\/p\u003e\u003cp\u003e146 billion Euros.\u003c\/p\u003e\u003cp\u003eFinally, the average corporate value of the E.ON AG was determined at approximately\u003c\/p\u003e\u003cp\u003e109 billion Euros.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783640533497\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783640533497","offer_id":39425699545181,"sku":"9783640533497","price":27.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/f0f5a7bf-5e57-49e8-ab45-04527df05f7c.jpg?v=1777696313","url":"https:\/\/shop.autorenwelt.de\/en\/products\/corporate-valuation-of-the-e-on-ag-von-dennis-ducke-gabor-ivanyi-mark-kan","provider":"Autorenwelt Shop","version":"1.0","type":"link"}