Strategisk regnskabsanalyse og værdiansættelse af Cimber Sterling Group A/S

Mattias Erik Hansen & Søren Stub Rasmussen

Student thesis: Diploma thesis

Abstract

The purpose of this thesis was, based on a strategic and accounting analysis, to estimate the value of one Cimber Sterling Group A/S share on a stand-alone basis 1st of March 2010. The thesis concluded that Cimber Sterling Group A/S in the current marked is suffering from a higher cost base than other LCC companies, and therefore lower net earnings than these LCC competitors. The lower net earnings are related to the relatively low load factor, low number of block hours and the low earnings per employee. All implications that Cimber Sterling Group A/S’ invested capital is not materialising in shareholder value. These lower key figures was in the strategic analysis explained by an increase in competition, which put Cimber Sterling Group A/S’ market share under pressure and resulting in falling ticket prices. In the thesis we found that a way to break this downwards slope would be to focus on the routes, airplane fleet and the relating cost base. This way a lower cost base and higher focus on full use of assets would result in a higher margin, or possibility to lower the ticket price even further, that way capturing market shares. Under the current position in the market, the expected forecasts and future position in the market, we concluded that one Cimber Sterling Group A/S share on a stand-alone basis should have been traded the 1st of March 2010 at DKK 4,75. At DKK 4,75 the Cimber Sterling Group A/S share was, based on our expectations to the future, underrated at the 1st of March 2010, as it closed in DKK 3,19. We believe that the lower price could reflect potential investors mistrust to the management of Cimber Sterling Group A/S. We expect that potential investors would still benchmark the current position against Cimber Sterling Group A/S’ expectations to the future, published in the prospectus.

EducationsGraduate Diploma in Financial and Management Accounting, (Diploma Programme) Final Thesis
LanguageDanish
Publication date2010
Number of pages93