Percorrer por autor "Haslerud, Christopher Alexander"
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- Equity valuation of BAKKAFROSTPublication . Haslerud, Christopher Alexander; Bonfim, Henrique Miguel Ribeiro GuimarãesThe main objective of this master thesis has been to determine the fundamental value of the Faroese based salmon farming company Bakkafrost as of the date 31/12/2015. A set of analytical tools based on recognized academic theories have been applied when analyzing the competitive environment, industry value drivers and historical performance. The findings of these analyses constitute the foundation for the forecasting of the company’s future performance. The intrinsic value has then been estimated by applying the discounted cash flow (DCF) methodology using the projected free cash flow to the firm (FCFF) discounted at the weighted average cost of capital (WACC). The relative valuation approach is also applied, mainly relying on forward-looking enterprise value (EV) multiples, but also presenting a set of priceand industry specific ratios both using the forward- and trailing multiples approach. My valuation results vary between the methodologies used, where my multiples approach in general yielded the lower values. For my final verdict on the firms intrinsic value I lean towards the value obtained in the DCF analysis, as I believe this best incorporates my view of the company’s future prospects and the confidence I have in my underlying analysis. To further test the assumptions I make in the DCF valuation, I conduct a set of sensitivity- and scenario analysis. The paper concludes by comparing my results to an analysis performed by the investment bank Fearnley Securities, as well as a short presentation of how the stock has performed in the wake of the valuation date.