PARROT financial analysis SKEMA business school

1. Financial Valuation
Elisabeth Ho-Fuh; Lene Nygaard; Romain Valenti; Dmitrii Sytyi

2. Drones
Wireless
Electronics Other
Car
infotainment

3. Wireless
infotainment Drones
Wireless
Electronics Other
69%
18%
13%
1%

4. 259millions
5500
billions
not to scale
Avg: 16M
39billions
Industry

5. 259millions
164millions
not to scale
39billions

6. MARKET β
Industry
0.59
Less Volatile More Volatile
Industry averages: STERN [Link]
1.15
Less Volatile More Volatile
1.01
Less Volatile More Volatile
2.13
Less Volatile More Volatile
Company averages: REUTERS [Link]

7. DEBT to EQUITY
0,52
Industry 0,50
0,6
0,91
Industry averages: Yahoo [Link]

8. 2,61
ENTERPRISE MULTIPLE
Industry 7,79
11,65
7,42
Industry averages: Yahoo [Link]

9. PRICE to EARNINGS
25,3
Industry 33,5
15,52
30,38
Industry averages: Yahoo [Link]

10. COST of CAPITAL [WACC]
Industry
5.42%
better badder
8,37%
better badder
8,3%
better
badder
8%
better
Industry averages: Yahoo [Link]
badder

11. WACC vs ROIC
5.42%
better badder
4.67%
badder bedder
Industry averages: Yahoo [Link]
WACC
ROIC

12. GROWTH RATE [CAGR]
Industry 5,29%
betterbadder
Industry averages: CSI Market [Link]
2.97%
betterbadder
4%
betterbadder
6,72%
betterbadder

13. €75.000
€150.000
€225.000
€300.000
2011 2012 2013 2 014
EBT EBIT EBITDA Net Sales
INTRINSIC VALUATION

14. €75.000
€150.000
€225.000
€300.000
2011 2012 2013 2 014
CAGR = 2.97%
FORECAST

15. €75.000
€150.000
€225.000
€300.000
2011 2012 2013 2 014
CAGR = 2.97%
FORECAST

16. 2 014 2015e 2016e 2017e 2018e 2019e
EBT EBIT EBITDA Net Sales
€75.000
€150.000
€225.000
€300.000
2011 2012 2013 2 014
CAGR = 2.97%
FORECAST

17. Wireless Drones Infotainment

18. Wireless Drones Infotainment
The wireless audio device market is estimated to reach $24.52 billion
by 2020, at a CAGR of from 2014 to 2020.“ ”25.23%
Source: RNR Market Research [Link]

19. Wireless Drones Infotainment
The market for commercial/civilian drones will grow at a compound
annual growth rate (CAGR) of between 2015 and 2020…“ ”19%
Source: Market Wired via Yahoo Finance [Link]

20. Wireless Drones Infotainment
Based on the present economic conditions and the optimistic future
conditions, the In-Car Infotainment (Ici) Market is expected to grow
at a CAGR of through 2016.
“
”12.1%
Source: Business Inside [Link]

21. Wireless Drones Infotainment
25.23% 19% 12.1%
14.8%

22. Our verdict:
INVEST