Financial Analysis and Valuation of Global Companies

Client Name

Tricap Investments

Faculty Advisor

Dr. Mohsin Sadaqat

SBS Thought Leadership Areas

Investment Decision Making

SBS Thought Leadership Area Justification

This ELP directly embodies the Investment Decision Making thought leadership area through its core objective of deriving intrinsic valuations for four globally diversified companies including Ferrari N.V., Alibaba Group Holding, Empower, and Retal Urban Development  by using rigorous DCF methodology for actionable investment recommendations to Tricap Investments. The project required applying foundational finance concepts including CAPM-based cost of equity, WACC construction, and terminal value estimation across four different geographies, currencies, and business models. Each valuation culminated in a formal BUY or SELL recommendation grounded in quantitative analysis and qualitative judgment, mirroring the real-world investment decision-making process practiced by professional equity analysts and fund managers. The diversity of companies analyzed  spanning luxury automotive, district cooling utilities, Saudi real estate, and Chinese technology further challenged the group to adapt valuation assumptions to distinct industry dynamics, macroeconomic contexts, and risk profiles, reinforcing the practical and analytical dimensions of investment decision making.

Aligned SDGs

GOAL 8: Decent Work and Economic Growth

Aligned SDGs Justification

This project evaluates four companies that are significant employers and economic contributors in their respective markets. Ferrari generates economic activity across Italy's precision manufacturing supply chain. Alibaba supports millions of merchants and logistics workers across China and internationally. Empower sustains employment across Dubai's urban infrastructure sector, while Retal directly drives construction employment and housing delivery under Saudi Arabia's Vision 2030 economic diversification agenda. By conducting rigorous DCF-based valuations, this project helps investors like Tricap allocate capital efficiently toward businesses that drive sustainable long-term economic growth.

NDA

No

Abstract

The ELP was carried out for Tricap Investments, a UAE-based diversified investment management firm. The ELP was conducted under the guidance and supervision of Mr. Anas khan, investment analyst at Tricap. The major tasks involved constructing financial models and DCF valuation for companies including Retal Urban Development, Alibaba Group Holdings, Empower, and Ferrari N.V. A standardized valuation technique was applied across all four companies including industry and company analysis, revenue and cost forecasting, and estimation of intrinsic value using relevant WACC terminal growth assumptions. The results showed few key findings including Alibaba trading at a discount to its DCF-implied intrinsic value of HKD 225 per share versus a market price of HKD 133.90, implying a 67.9% upside mainly driven by high demand for its Cloud business and expansion of AIDC in the GULF region. Retal also appears to be undervalued compared to its contracted revenue backlog of SAR 17.7 billion and its structural positioning within the Saudi Arabia’s Vision 2030 housing scheme. The DCF valuation for Empower indicates an intrinsic share price of AED 1.96 versus the current share price of AED 1.60 signaling potential undervaluation with an upside of around 22.5% primarily driven by its monopoly position and long-duration contractual cash flows. Ferrari is well known for its exceptional business quality, but according to our DCF analysis, the share price is currently overvalued and has a 10% downside as compared to the current market price. So, according to our DCF analysis, we recommend Tricap to accumulate positions in Alibaba, Retal, and Empower, and Sell Ferrari.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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