Valuation of SalMar ASA and effect of RSU on intrinsic value

Davide Tumbiolo & Bianka Maliku

Student thesis: Master thesis


The scope of this work was to find the intrinsic value of SalMar ASA and understand what are the effects that the new incentive scheme for the managers and key personnel, namely Restricted Share Units, have on the value of the company’ s share.
The valuation was performed at the cut-off-day 23/08/2018 and the share price derived is 455,38 NOK. The market price of SalMar ‘s share at the cut-off-day was 410,00 NOK, suggesting an undervaluation of the company. For what concerns the degree of influence of the RSU on the intrinsic value, the share price was forecasted considering the grant of the Restricted Share Units. Without it, the intrinsic value would have been 478,47 NOK.
To derive the share value, the Financial Statement Analysis and the Strategic Analysis were performed in order to find the key drivers to use as inputs in the Forecasting. After estimating the cost of capital, the Valuation was performed using two different models, namely the Discount Cash Flow Model and the
Residual Operating Income Model.
The sensitivity analysis helps discover what factors have most impact on the value of the share, and among them are the inputs related to Restricted Share Units

Educations, (Graduate Programme) Final Thesis
Publication date2018
Number of pages115