Strategisk analyse og værdiansættelse af Chr. Hansen Holding A/S

Lars Sejer Nielsen

Student thesis: Master thesis


This master thesis is about the Danish Bioscience company Chr. Hansen Holding A/S, which is the market leader in manufacturing of cultures and enzymes for the food industry. These products are primarily targeted at dairies for their manufacturing process of cheese, yogurt and other dairy products. In addition they manufacture natural colours for use in the food and beverage industry, as well as ingredients for dietary supplement manufacturers, targeting Human nutrition and ingredients that improve feed intake and digestion targeted Animal nutrition. It is the purpose of this to analyze whether the company's stock, which is listed on the NASDAQ OMX Nordic (Copenhagen Stock Exchange), is trading at a fair market price? To solve the master thesis issue, there has been made a strategic analysis of how the internal and external factors exercise influence on Chr. Hansen Holding A/S. The strategic analysis is followed by a financial analysis of the company's accounting, financial key figures and profitability. The strategic analysis has been made using a PEST analysis model. The external macro-environment has been examined including Political, Economic, Social and Technological factors. Industry level has been examined by applying Porter's Five Force. This model analyzes the external factors shows which entry barrier the industry has, how bargaining power is for the suppliers, the threats from competing products, how customers' bargaining power is to the industry and the competitive situation in the industry. The internal factors are analyzed with regard to its material, intangible and human resources, as well as the strategies for growth and core competencies. The individual models from the strategic analysis are summarized in a conclusion and added up in a SWOT - analysis of the company's Strengths and Weaknesses and the Opportunities and Threats. The financial analysis has been prepared in order to isolate and determine how much of the total profit is attributable to core activities and how much comes from other activities. The historical figures have been reclassified and reformulated in order that they may be used for forecasting purposes. The company's equity is divided into transactions which are attributable to the owners and those that are attributable to the company's total income (total profit). The company's balance sheet is divided into net operating assets and net financial liabilities, and calculated into average values. In order to analyze Chr. Hansen Holding A/S profitability, the key figures have been compared to the closest competitors. This concludes that the company performs it better than or at least as good as comparable companies. For the valuation of the Chr. Hansen Holding A/S share, based on the historical key figures for the financial years, a budget has been estimated forecasting key figures for the financial years 2012/13 to 2016/17. The valuation is calculated based on the cash flow model (FCFF-model), also known as the DCF - model (Discounting Cash Flow – model). The owners' return on investment is allocated using the CAPM calculation model (Capital Asset Pricing Model), concluding the return that an investor can expect from an alternative investment with the same risk. The owner´s return is calculated to 8,40, and the weighted average cost of capital (rWACC) is calculated to 6,33. The forecast budget estimates that a fair price for a share in Chr. Hansen Holding A/S is: 257.67 DKK. At this time, the share is sold on the Copenhagen stock exchange at 187.30 DKK (4 December 2012).

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2013
Number of pages104