A Work Project, presented as part of the requirements for the Award of a Master Degree in Finance from the NOVA – School of Business and Economics. EQUITY RESEARCH REPORT: VALUATION OF BEYOND MEAT STEFAN MAYRL 33994 ANDREA VERZEGNASSI 33809 A Project carried out on the Master in Finance Program, under the supervision of: Filipa Frade de Castro 3rd of January 2020 Abstract This equity report aims at analyzing the recently listed company Beyond Meat, and the latest development in the plant-based meat alternatives landscape. By thoroughly analyzing the company and its industry, we conceived a valuation model that encompasses all the drivers which will underpin the growth of the company and the industry. Throughout the report, we present drivers as well as the methodology used to arrive at our underlying model assumptions. Having analyzed the current and the potential future environment for Beyond Meat, our results suggest that the company is trading at a discount and recommend investors to buy the stock. Keywords Beyond Meat, plant-based, meat alternatives, high-growth This work used infrastructure and resources funded by Fundação para a Ciência e a Tecnologia (UID/ECO/00124/2013, UID/ECO/00124/2019 and Social Sciences DataLab, Project 22209), POR Lisboa (LISBOA-01-0145-FEDER-007722 and Social Sciences DataLab, Project 22209) and POR Norte (Social Sciences DataLab, Project 22209). MASTER IN FINANCE EYOND EAT NC OMPANY EPORT B M , I C R PLANT-BASED MEAT ALTERNATIVES 03 JANUARY 2020 STUDENTS:
[email protected] STEFAN MAYRL, ANDREA VERZEGNASSI Recommendation: BUY Hype of a new industry Price Target FY20: 90.05 $ First-mover or future market leader Price (as of 2-Jan-20) 75.64 $ ▪ Beyond Meat is the current flagship of the plant-based meat Bloomberg: 02/01/2020 industry.