Valuation by the discounted flow method of the company Cementos Argos years 2021-2025

Abstract

The purpose of this study, entitled “Valuation by the Discounted Cash Flow Method of Cementos Argos for the Period 2021–2025”, is to demonstrate the financial viability of the company through the application  of the  perpetuity  model over a five-year horizon,  using historical periods 2016–2020 as a baseline and projecting the years 2021–2025. A quantitative methodology was employed, with a descriptive, exploratory, and projective approach. The analysis was carried out using the Economática tool, applying the Discounted Cash Flow (DCF) model based on the calculation of the Weighted Average Cost of Capital (WACC) as the discount rate. The valuation enabled the estimation and identification of the real value of Cementos Argos, providing evidence of its financial performance over the projected horizon. Furthermore, the internal valuation results were compared with the market valuation of the Latin American industrial sector, identifying coherence and viability between both perspectives. The findings indicate that the application of the discounted cash flow method constitutes a robust tool for company valuation in emerging markets, provided it is supported by historical projections and reasonable assumptions. The importance of contrasting results with market valuations is highlighted as a means to validate the consistency of estimates. In conclusion, the valuation of Cementos Argos through the discounted cash flow model confirms its financial viability and the relevance of this method as a support mechanism for strategic decision-making. Additionally, the comparison with the Latin American industrial sector valuation reinforces the validity of the results and provides valuable inputs for business management.