Strategisk regnskabsanalyse & værdiansættelse af Novozymes A/S

Anja Bødiker

Student thesis: Master thesis


The purpose of this thesis is to perform a strategic financial analysis and valuation of the Danish company Novozymes A/S, to discover if the stock is under- or overestimated compared to the official market price stated by the Copenhagen Stock Exchange on 31st December 2009. Novozymes is the world leader in bioinnovation. Its core business comprises industrial enzymes, microorganisms, and biopharmaceutical ingredients. Biological solutions enable companies to be more efficient at generating greater output from less input, thereby conserving energy and raw materials, and reducing waste. The result is higher quality products, cost reduction, lower CO2 emissions, and a better environment. That is why Novozymes was chosen for this thesis, as managing climate change is high on the agenda of many countries and companies worldwide. The strategic analysis concludes that Novozymes’ growth perspectives look strong, especially concerning its development of bioethanol. Threats from competitors are minimal, entry barriers are high, and the global climate agenda is increasing consumer awareness of the environment and the issue of sustainability. All of these factors are assisting Novozymes in opportunely positioning its products to be in the right place at the right time. Novozymes must use its expertise to seize the opportunities that arise from these minimal threats and continue its innovation, to ensure a complete long-term product pipeline. The financial analysis, based on historical information, revealed that Novozymes was only slightly affected by the global financial crisis and the company’s focus on cost savings and efficiencies have borne fruit. The operational risk is high; however the financial risk is low. Core income and ROIC have developed positively and, together with the rest of the fundamental analysis, form the basis of the future budget. The valuation of Novozymes is estimated to be DKK 635 per share. Compared to the Copenhagen Stock Exchange’s published market value of DKK 540 per share, the estimated value is 14,9% higher. This thesis concludes that Novozymes is underestimated and therefore recommends investment in the company. The estimated value is defected with some precaution and is highly dependent on certain estimated variables, as the sensibility analysis shows, but the conclusion remains as previously stated.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2011
Number of pages97