Strategic and Financial Valuation of Össur

Dyrleif Bara Einarsdottir

Studenteropgave: Kandidatafhandlinger

Abstrakt

The objective of this thesis was to find the fair value per share of Össur on the 5th of February 2014 as well as to estimate if the share is over- or under priced. Össur’s share price has been increasing rapidly in the last years and especially in 2013 with a 42% increase in share price from beginning to end year. A strategic analysis was made to find out what economical factors influence Össur’s value. The analysis consisted of macro-, industry- and internal analysis. Those were summed up in a SWOT analysis. The results were that Össur has a very strong IP-portfolio and expansion opportunities. Few weaknesses and threats were found but the main ones that could influence the future growth were changes in insurance reimbursement plans, dependence on raw material and currency fluctuation. The strategic analysis was then followed by a financial analysis to find the key financial drivers. Össur’s sales have been growing over the last years and profit increasing. Profitability and liquidity risk analysis were also preformed. The results from them were that Össur is providing acceptable profit results for its stakeholders and is liquid enough to meet all short-term and long-term obligations. A sensitivity analysis reviled that the stock price is more sensitive to changes in WACC than it is to changes in growth rate. The valuation of the company was done using DCF and EVA models. The results were a share price of 13.36 DKK and 13.35 DKK respectively. Compared to the value of 11.7 DKK on 5th of February 2014 that is a difference of 14.2%. I conclude therefore that the share price of Össur is under-valued and based on that and the profitability analysis I would recommend investors to buy shares in Össur.

UddannelserCand.merc.fsm Finance and Strategic Management, (Kandidatuddannelse) Afsluttende afhandling
SprogEngelsk
Udgivelsesdato2014
Antal sider65