Værdiansættelse af Georg Jensen A/S

Bilal Rasul

Student thesis: Master thesis

Abstract

The purpose of this master’s thesis was to estimate a valuation of the Danish high end jewelry company Georg Jensen A/S. The company has recently been sold to the Arabic owners of Investcorp for the amount of DKK. 812 million. The new owners plan to expand the new business by investing in further estab-lishment on the Chinese market. As a part of these initiatives, they have also con-sidered a public listing on the stock market of Hong Kong. In extension of this it is very relevant to estimate a stock value of the company. The valuation report consists of three main chapters: an assessment of the com-pany’s current strategic position, a financial analysis and an analysis based on budgeting of the company’s main markets. The assessment of the strategic posi-tion has contributed with some crucial points that need to be taken in to account on the valuation of the company. Firstly, the company is situated in a market with a stiff competition. The numbers of competitors are big and they are all focused on the same markets. Secondly, the survey analysis show that Georg Jensen have some difficulties in creating awareness among the consumers. The financial analysis shows that the company has had great difficulties in making profit since the start of the financial crisis in year 2008. The trend analysis con-clude that Georg Jensen A/S have EBIT-margins below average. The lack of profitability is due to a rising level of expenses. The expenses contain 89 % of the total revenue. As a comparison, the competitor Pandora only has a margin of 64 % costs relative to the total revenue. The budgeting analysis shows that the company’s main markets are characterized by low market growth rates in the next 4-5 years. Danish, Australian and Japanese markets are estimated to either maintain current level or to increase with minor growth rates. The only market that contains a positive growth rate is the Chinese, and with the new owners from Bahrain, it is expected that they will deliver the financial support to carry out the needed investments. The report concludes that the valuation of the company is estimated to DKK. 171 a stock under the abovementioned conditions.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2014
Number of pages101