Matas A/S: Strategisk analyse og værdiansættelse

Michael Jensen & Marie-Louise Mørch

Student thesis: Diploma thesis


The purpose of this thesis is to indicate the value of Matas A/S. The purpose is to determine whether the estimated market value as of 31 March 2014 is attractive compared to the actual quoted market price. In order to reach this estimated value, the thesis is divided into four main chapters consisting of a strategic analysis, a financial analysis, budgeting and a valuation. Matas A/S is a Danish listed company, whose principal activity is to own and operate retail stores within the Matas chain, including activities within sale of products and services, primarily in beauty, health, household and personal care. The company was created in 1949 when a collection of materialists decided to join forces, in order to obtain the benefits of volume discounts by joint procurement. That is how the name Matas, Materialist Stock's Society, came into existence. Matas A/S was listed on the Stock Exchange on 28 June 2013 with around 12,000 shareholders. Matas is the largest retail chain of health, beauty and personal care in Denmark with a turnover of DKK 3,200 million in 2012/2013 and more than 2,000 employees. A strategic analysis was performed of the company and related markets. The analysis concluded that Matas has a great opportunity for market growth by buying the rest of the associated stores, including the Esthetique stores. This could give them an advantage in the market with increasing sales within hair care, nail products and makeup. Additionally, their loyal and active customers will give Matas an advantage in comparison to other players in the industry. Matas is subject to some identified risks in connection with competitors entering the Danish market and bringing great capital. They are also exposed to the economic cycle in Denmark. The financial analysis concludes that the company’s ratios show positive growth. An analysis of return on equity showed a steady growth in 4 years, from 9.84% to 10.78 %, with improvements in underlying drivers of ROE. Additional risk analysis shows no significant relationship that could affect this growth negatively. The budget is prepared based on the above analyses, and the estimated theoretical market value is based on calculations using the DCF model. The calculation shows a market value of DKK 116. As the calculation shows a theoretical market value below the actual market price, it is not recommended to buy shares in Matas A/S at the market price of DKK 152 as of 31 March 2014.

EducationsGraduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis
Publication date2014
Number of pages82