En strategisk analyse og værdiansættelse af Vestas Wind Systems

Kristina Kunak Kristiansen

Student thesis: Master thesis


On the wind energy marked Vestas Wind Systems has been the market leader for years, and still holds the greatest marked share for one single company. In recent years however, Vestas and the rest of the wind energy industry have been hit hard by the financial crisis, and for the first time in six years this resulted in a deficit for the year 2011. Vestas is still the world’s largest manufacturer of wind turbines, but has been losing ground, especially on the offshore marked which is today dominated by Siemens Wind Power. The wind energy industry is greatly affected by the decisions of politicians, regarding subsidy schemes and the focus on green energy rather than fossil fuels or nuclear energy. Some countries have set ambitious goals, but no global agreement has been reached yet. The wind energy industry is affected by funding difficulties, rising prices of raw materials, the risk of losing subsidies and competition from other energy sources. The wind energy industry however still holds a great potential, due to the climate changes contributed to global warming and a growing wish to be independent of fossil fuels. This potential is present on both traditional markets like Europe and North America, but also on new markets like Brazil and Australia, where Vestas with its global organization is in a strong position to make the most out of this potential. An analysis of key financial figures shows, that the financial troubles of Vestas are in part due to the rising competition and falling prices in later years, in combination with their focus on quality products rather than low price. Furthermore large investments in manufacturing facilities have resulted in an excess of capacity. Also a new accounting policy, has affected the result of last year in a negative way. To counter this development, Vestas is changing its strategy, to focus more on other business areas than the traditional focus on onshore wind turbines. Vestas is in a good position to turn around the development, as they in the past have shown they can make money, and they still have a lot of know-how and a continuing focus on new technology. To turn the 2011-deficit into profit, they however need to cut down on expenses in order to make use of the turnover. The appraisal of Vestas shows, that Vestas should be able to reach a stock value of 157,92 DKK at the end of the time horizon, comparing to the current (7. March 2012) stock value of 53,50 DKK. On a short term basis however, Vestas is in a rather weak position compared to its competitors and in the short run, Vestas is thus to be considered as a somewhat risky investment.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2012
Number of pages89