| Emma Villas SpA, a company established in 2006 by Giammarco Bisogno, an expert in the sector with over 25 years of experience, is a leading incoming tour operator specialised in the weekly vacation rentals sector of luxury villas and residences with private swimming pools. The Company, which boasts a widespread presence in 15 Italian regions, is the leading operator in Italy in terms of the number of properties managed and marketed exclusively, operating through so-called mandates without representation for at least two years. In the context of vacation villa rentals, mandates without representation refer to a specific type of mandate agreement, in which the owner of a villa gives an agent (Emma Villas) the power to manage the vacation rental of the property for a period (in this case at least two years), without conferring the same agent legal representation. Despite the impact of the pandemic that has certainly negatively affected the market, the number of non-hotel accommodations in Italy increased in the 2019-2021 period, showing a 19-21 CAGR of +0.7%, thus reaching about 188.30 thousand properties in 2021. The trend is, albeit slightly, positive, in contrast to the decrease in the hotel supply, which in the three-year period showed a 19-21 CAGR of -1.0%, with a number of hotels equal to 32.10 thousand in 2021. The resilience of non-hotel facilities in such a complex period has, in particular, been driven by an increase in entrepreneurially managed rental accommodation. In fact, the latter show a 19-21 CAGR of +2.2%, representing 60.0% of total non-hotel facilities in 2021. We have conducted the valuation of Emma Villas’s equity value based on the DCF methodology and the multiples of a sample of comparable companies. The value resulting from the application of the DCF methodology (which in the calculation of the WACC includes for prudential purposes a specific risk equal to 2.5%) is equal to € 53.1 mln, while the equity value resulting from the multiples method, applying a 25% discount, is equal to € 43.0 mln. The result is an average equity value of € 48.1 mln. The target price is € 6.90, BUY rating and MEDIUM risk. |