Strategisk og regnskabsmæssig værdiansættelse af Rockwool International A/S

Martin Nørgaard

Student thesis: Master thesis

Abstract

Background: Rockwool International A/S is world leading manufacture company of stone wool products and has for several years a high growth. Then the financial crisis came in 2008 and the company’s sales went down rapidly due to the result of the collapse of the building industry. This forced Rockwool International to seek for new markets to fulfill the investor’s expectations. The world focus on the environmental issues has been a key opener for new markets for Rockwool Internationals since the properties of their stone wool products, includes both insulation and flame retardant. The company is now expanding global and invests in new production sites on markets as Asia, India and Northern America. This step is necessary for the company’s further growth but there is still a huge risk to expand in these markets since the market nowadays is not unstable. Purpose: The purpose of this thesis “Fundamental analysis and valuation of Rockwool International A/S” is to determine the market value of Rockwool International A/S shares, on 20th November 2012. Methodology: The thesis is based on two analytic perspectives. The first perspective is a strategic analysis that looks into a company’s strengths and weaknesses. Secondary perspective is the financial analyses which discuss a company’s historical view on the financial development, which further reflects the possibilities and threats the company has. Conclusion: Based on the result from the analysis of the strategic and financial perspective in Rockwool International, a budget has been designed to show how the future cash flow in Rockwool International likely would be until 2020. By using this material and the methodWACC (weighted average cost of capital), which determent the present value of the future cash flow, the final estimation to determine Rockwool International value was done. The estimated value of one share in Rockwool International A/S the 20th of November 2012 to be DKK 927.47, a value that is 72 % over the official price. Finally the sensitivity analysis shows that the share price is very vulnerable to variations in the budgeted sales growth and WACC. But with the result of this thesis that shows an estimated share price on 72 % over market value, is it profitable to invest in Rockwool International.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2013
Number of pages94