EQUITY RESEARCH: CORTICEIRA AMORIM S.G.P.S., SA

This project contains an extensive financial analysis of Corticeira Amorim S.G.P.S., S.A. (COR). It was conducted in accordance with ISEG - Lisbon School of Business and Economics’ Master in Finance Final Work project standards and written following the CFA Institute Research Challenge guidelines. COR is a Portuguese, family-owned, company established in 1870. COR is the world’s largest cork processing company, being the industry’s leading company for over 150 years, with an established presence in 28 countries worldwide, having no one-to-one peer in the sector it operates, giving it the ability to behave in a nearly monopolistic way. In order to reach the recommendation of HOLD given the fair value price of €9.17 per share, with an upside potential of 13.61% relative to the trading price of €8.07 in March 2025. This value was reached through the combination of four valuation methods: Discounted Cash Flow (DCF) method, Relative Peer valuation, Monte Carlo Simulation and the Dividend Discount Model. Although there seems to be a bright and optimistic future for COR, it is important to keep in mind the potential associated risks with the industry at hand, whether these be the fluctuations in wine demand and consumption, the availability of cork as a raw material as well as environmental phenomenon that can be ever unpredictable and yet impact deeply the industry, and consequently affect COR’s performance in the future.