Værdiansættelse af Danisco A/S: Er fair value på Daniscos aktier over- eller undervurderet?

Abstract

Danisco A/S is one of the leading companies in food ingredients and industrial enzymes, measured by the total sales compared with the market potential. Danisco is a public listed company, and is listed on the Danish stock market OMXC20. Danisco is representing the company in several countries worldwide and has over many years, accumulated considerable know-how. During the financial crisis was Danisco, as all other firms, weakened by a nervous and downward market. After the crisis has Danisco shown renewed strength, and has made a strong comeback. Especially has the division Genencor shown future potential and this has given Danisco brand new growth opportunities. The division Genencor is created through a joint venture with the U.S. Company Dupont. On January 10, 2011 Dupont gave a bid for Danisco to 665 kr. per share. This offer proved later not to be good enough for shareholders and was therefore not implemented. The deal came to nothing and Dupont had to make a better offer. In this connection they raised the bid to 700 per share as their last and final offer. This thesis aims to value Danisco to see if the offer overestimate or underestimate the fair value of the share. This thesis will culminate in if it can be recommended the investors to accept the offer or not. The valuation is based on a strategic analysis that should help to identify the "non-financial value drivers". The strategic analysis was summarized in a SWOT analysis, which indicated that Danisco is a company with great growth potential. This was based on wide expertise, a unique technology platform and skilled employees. Accounting analysis helped to explain the historical development of Danisco. The focus was on analyzing the return on equity. It turned out that the ROE had large declines, which could be justified by developments in the underlying value drivers. The last few years, the divisions again demonstrated strength and there is again high growth rates expect. Danisco was valued from the FCFF- and RIDO-model. The valuation resulted in the fair value of Danisco's shares stood at DKK 705 per share. The final conclusion was that it is assessed that this price touches the fair value of stock, and represents an attractive offer that Danisco's shareholders should accept