Home 170731 Philips Lighting | still attractive?
170731 Philips Lighting | still attractive?

170731 Philips Lighting | still attractive?

No. pages 26
Description

As of 27 May 2016 Philips Lighting has been listed on Euronext Amsterdam after Philips offered a minority interest to the market. The offer price was EUR20.00 per Philips Lighting shares.

In November of last year we issued an in-depth report on Philips Lighting. At that moment the shares were trading at EUR21.50 and we judged an investment in the company as highly attractive. Our target price was EUR30.35, suggesting more than 40% upside.

Today the shares of Philips Lighting trade at EUR31.80 which is close to 5% ahead of our initial target price. This implies that these shares have advanced close to 50% since we wrote our in-depth report.
Therefore we believe it is time to revisit our estimates, assumptions and investment opinion.

In this report we will review the most important assumptions we made last year and modify those assumption if and when necessary.

On basis of these modified assumptions, we will present our financial outlook for the company. This outcome will result in amongst other valuation multiples which shall be compared to its peers and a target price based on our DCF model.

Lastly we will draw our conclusions and investment opinion.

Contents

      executive summary
1    introduction
2    Philips at a glance
3    our main assumptions revisited | sales and adjusted EBITA
3.1 Lamps
3.2 LED
3.3 Professional
3.4 Home
3.5 Other
3.6 fine-tuned revenue and operating profit estimates
4    our main assumptions revisited | EBITDA and Free Cash Flow
4.1 EBITDA
4.2 Free Cash Flow
5    our main assumptions revisited | earnings estimates until 2020
6    our main assumptions revisited | other key DCF parameters
7    Philips Lighting's valuation multiples compared to its peer group
8    summary and conclusions
9    appendix

Created Date: Monday July 31, 2017 15:15:35
Last Updated Date: Monday July 31, 2017 15:15:35
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