Bureau Veritas: Higher negative impact from exhange rate fluctuation
BUY, Fair Value EUR27 vs. EUR29 (+16%)
Over two-thirds of the group’s revenue is generated in currencies other than the euro, including 12% in US dollars, 6% in Australian dollars, 5% in Chinese yuan, 4% in Brazilian real and 4% in Hong Kong dollars. Taken individually, other currencies do not represent more than 5% of the group’s revenue. Taking into account the continuing decline of most of these currencies during Q3 and the current levels, we adjust our forecasts for 2013e and 2014e. With a higher operating margin in most of these fast-growing zones, the group EBIT margin could also be impacted. All in all, our DCF derives a fair value of EUR27.
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