Article,

Economic engineering: Valuation as a tool to analyze the market value of an aeronautical company through the announcement of a joint venture

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Global Journal of Engineering and Technology Advances, 4 (3): 051-063. (September 2020)
DOI: 10.30574/gjeta.2020.4.3.0074

Abstract

The aeronautical industry in Brazil is paradoxical: while, on one hand, brazilian population is proud of Alberto Santos-Dumont, a pioneer in air navigation and flight with the 14-bis airplane, on the other, this is a country where large-scale aeronautical manufacturing occurred late. Throughout the early decades of the twentieth century, there have been successive attempts to create a long-term, unsustainable aeronautical industry in the country. This paper aims to perform an analysis of the valuation of a publicly traded company in the industrial goods, transport material, aeronautical material and defense sector, according to the classification of the brazilian stock exchange. The method used to use the discounted cash flow, which is projected or the company's cash flow, uses the discounted historical financial data at a rate that represents its business value. This proved to be reliable as the market value found through it was within expectations compared to the value disclosed by the company. As a tool, valuation was applied to the data disclosed, in the stock exchange, by the studied company.

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