FLSmidth & Co. En værdiansættelse. Baseret på en strategisk regnskabsanalyse af FLSmidth

Adam Chr. M. Malling

Student thesis: Master thesis


The purpose of this master thesis is to determine the theoretical share price of FLSmidth & Co A/S. FLSmidth is a supplier of equipment and services to the global minerals and cement industries. FLSmidth supplies everything from single machine units to complete minerals and cement plants including associated services. The state of the market have been full of turmoil from the aftermath of the financial crisis – As FLSmidth operates globally they are dependent of the economic development. Following the financial crisis, FLSmidth stands at a crossroad. In 2012, FLSmidth launched a new global growth strategy and a new company structure. It is the ambition to become the preferred full-service supply solution to the following six industries: copper, gold, coal, iron ore, fertilizers and cement. As a consequence of the new strategy, FLSmidth expanded its structure from two to four divisions: Cement, Customer Services, Material Handling & Mineral Processing. The thesis will take the reader through the history of FLSmidth to its present state and its future opportunities. Through strategic and financial analysis will the valuation of the company be obtained. The theoretical framework used for the strategic analysis of FLSmidth includes: PEST analysis, Porter’s five forces and a value chain analysis – all summarized in a SWOT analysis. Furthermore there is a peer group analysis which includes a beta analysis together with a Sharpe analysis. Following the strategic analysis is an in-depth financial analysis of historic figures. Based on the strategic and financial analysis a forecast of the future financial performance is made. Based on the forecast, the valuation of FLSmidth is conducted using a DCF-valuationmodel. The valuation of FLSmidth based on the DCF-model is estimated to DKK. on March 1st 2013, which equals a share price of 452,4 DKK. The estimated value is about 18 % above the current share price (March 1st) of 384,9 DKK. The FLSmidth stock is very volatile and the recommendation is to see FLSmidth as a long term investment.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2013
Number of pages100