Strategisk analyse og værdiansættelse af Bang & Olufsen A/S

Kirsten Pagh & Peter Christian Langeskov Poulsen

Student thesis: Master thesis


The Bang & Olufsen Group is a Danish based manufacturer of high-end audio, video and multimedia products, which are world renowned for its design and quality. The group was founded in 1925 and has since grown to become an international player with exclusive retail stores throughout the world and production facilities in the Czech Republic. The B&O brand ranks in the top of the luxury segment and has done so for a long time. The purpose of this thesis is to perform a valuation of the B&O Group based on the Economic Profit framework in light of the newly released strategy plan “Leaner, Faster, Stronger”. The thesis will conclude whether or not the implementation of the strategic plan is realistic. The valuation compromises a strategic analysis to understand the B&O Group and its core competences and to establish an understanding of their position in the marketplace. Following the analysis is a comparison to the new strategy plan to identify whether or the not there is a strategic fit, enabling the B&O Group to capitalize on their non-financial value drivers. In addition to the strategic analysis a financial analysis is performed to identify the B&O Group’s financial value drivers. This is performed by analyzing and reworking the financial statements, including profit and loss statement, balance sheets and equity from the last 5 financial years. The reworked statements are used to calculate key figures for the historic value creation, which have shown that B&O have faced great challenges in 2008/09 due to the financial crisis, but also the company has implemented initiatives to turn the situation. The strategic analysis and financial analysis provide the basis for the future forecasting, which incorporates the core competencies and the actions set forth in the strategy plan. Two different scenarios have been budgeted – a base case scenario, which is based on the expected development, and also a best case scenario, which is based on a full implementation of the strategy plan within 5 years. The final valuation reaches a share price of 80 DKK in the base case scenario, which is slightly above the current market value. The best case scenario reaches a share price of 128 DKK, but the thesis concludes that this calculation is based on too positive budget assumptions, thus making the strategy plan unrealistic to implement within a 5 year period.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2012
Number of pages138