ETD

• CAPM model
• Company Valuation
• DCF method
• WACC approach

The thesis begins with a historical overview of both the Bulgari Group and the LVMH Group. Then, it focuses on the acquisition process, examining the method and structure of LVMH's acquisition of Bulgari. Subsequently, the study explains the theoretical models used in Bulgari's valuation (the DCF method, the WACC approach and the CAPM model) and discusses the critical aspects of the CAPM model. The analysis proceeds with the valuation of Bulgari before and after the acquisition. Before the acquisition, the Italian group is examined through its consolidated financial statements and key performance indicators such as ROE, ROI and ROS, in order to assess its profitability and efficiency. After the acquisition, to estimate Bulgari's value in 2011, the Discounted Cash Flow method is used together with the WACC approach and the CAPM model. This valuation aims to determine whether the price paid by LVMH was appropriate, taking into account subsequent events and the company's financial evolution from 2011 to 2023. In conclusion, the thesis discusses the main findings that emerged from the valuation analysis and highlights that, although LVMH appeared to pay a significant premium for Bulgari, the DCF results show that the amount paid proved to be consistent with the company's intrinsic value.