Værdiansættelse af Matas A/S

Casper Novod-Knudsen

Student thesis: Master thesis


The object of the following thesis has been to carry out a valuation of Matas A/S – A Danish beauty retailer. The project briefly introduces the company profile, where after a strategic- and financial analysis has been carried out. Combined these parts form the basis for the budgeting which is later used in the valuation of the firm. The valuation is performed through a DCF- and an EVA- valuation-model. The DCF act as the primary valuation model whereas the EVA was used to ‘sanity-test’ the outcome of the first. Hence the DCF carried out a base-case estimate of Matas’ stock price. The outcome of the primary model was then tested for eventual sensitivities to vital parameters in the underlying assumption, hereby obtaining the best/worst case scenarios that could inflict Matas stock price.
The valuation estimated the stand-alone value of Matas A/S to 128,9 DKK (WACC=6,51%) as of the 15th of March 2017, corrected for dividends paid out in the current year. Thus it is assessed to sell at a discount of 30% compared to the opening price of 99 DKK on the 15th of March. The report raised, throughout the paper, concerns towards several complications in the market. Especially two vital movements in the market were identified to have a negative impact on Matas - The introduction of the discount chain Normal A/S as well as the rising e-commerce volume. The newly increment in the competition of Matas’ market, has shown to increase price transparency, and thus Matas is forced to compete on their prices. Normal A/S will primarily penalize their Mass-Beauty segment, whereas the e-commerce impacts the entire total sales. Furthermore the financial analysis confirmed these tendencies, as the latest year (2015/16) has proven to show a decline in both total sales as well as their EBITA-margin. The drop in the EBITA-margin for the latest year from 17,5% to 17,2%, is mainly related to an increased marketing- and staff cost to account for the increased competition. Consequently Matas will have to lower their earning over the coming years and will be facing a more difficult future.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
Publication date2017
Number of pages129