Værdiansættelse af TDC

Michael Chen

Student thesis: Master thesis

Abstract

TDC is the dominant company in the field of telecommunications and entertainment solutions in Denmark. In 2006 Nordic Telephony Company (NTC) bought 87.9% of TDC. During the NTC's ownership, TDC has changed its focus on the Nordic market, and implemented a number of efficiency plans to provide more returns to investors. In 2010 NTC began to sell TDC's shares on the Copenhagen Stock Exchange. Therefore I make a valuation to answer the main question: What is the fair value of one TDC share and what should the recommendation should be in TDC`s share on April 5th 2013? The issue was analyzed through the use of a theoretical framework, and it has resulted in the following answer to the main question. In order to complete this thesis it was necessary to understand TDC`s business platform and the competitive surroundings in which the company conducts its ongoing business. The strategic analysis concludes that the competition between the telecommunication companies in Denmark is very strong. TDC set a new strategy focusing on the core business area and by making great investment in infrastructure and rationalizations, which is expected to give the company a competitive advantage. The financial analysis showed that TDC in the last three years has been improving their profitability. The primary valuation was based on the DCF-model along with a multiple valuation based on P/E, in order to determine the fair value of a TDC share the 5th of April 2013 which was calculated at 47 DKK. This shows that the share is underestimated with approximately 7 %. Therefore, there should be a BUY recommendation on TDC

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2013
Number of pages96