Evaluation of automotive sector companies with the discounted cash flow method

Abstract

The number of individual investors and Interest in the capital markets has recently increased rapidly in Turkey. Especially in the stock markets, investors should have basic and technical analysis information in order to make the right investment decisions. Among the fundamental analysis topics, company valuation methods have a very important place. In addition, although there are different company valuation methods, “Discounted Cash Flows Method”, which is among these methods, is one of the most known and used methods. The purpose of this study is to evaluate the two important automotive sector shares traded in Borsa Istanbul (BIST) according to the Discounted Cash Flow Method and to calculate the real market price. In this study, in which the "Free Cash Flow to Firm" method, one of the Discounted Cash Flow Methods, is used, it is seen that the real firm values are lower than the current market values. JEL: D53, D81, G11, G13.