| Simone SpA is an Italian company established in Naples in 2011 and operating in the publishing sector through a number of brands, including Edizioni Simone, which has over 50 years of history. Simone is also the parent company of Gruppo Simone, which has the following subsidiaries: Dike Giuridica Srl, Editrice Ardea Web Srl, Il Gatto Verde Edizioni Srl, Font Café Srl, and Libri e Professioni Srl. The Group represents an example of excellence in the Italian publishing market, and it is specialized in the publication of manuals and books for an extremely varied clientele. This clientele includes school students of all levels, as well as professionals preparing for university exams and public competitions of various kinds. The main objective of the Group is to combine the experience and expertise of it various companies, and to consolidate its positioning as a leading point of reference in the publishing sector. This is made possible by a large portfolio of proprietary content that is constantly updated by the in-house editors, as well as by a high-quality customer service.Gruppo Simone is a leading player in the Italian publishing sector. Currently the Group carries out its business exclusively in Italy, with a greater coverage in central and southern regions. In 2022, Italian publishing confirmed its leading role on the international scene, qualifying as the fourth largest market in Europe, after Germany, the United Kingdom, and France.We have conducted the valuation of Simone’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 € 24.6 mln, while the equity value resulting from the multiples method, applying a 25% discount, is equal to € 21.8 mln. The result is an average equity value of € 23.2 mln. The target price is € 3.10, BUY rating and MEDIUM risk. |