By fall 2009 it became obvious that rumors regarding the economic unstable situation were true. Parken Sport & Entertainment A/S was no longer able to hide the fact that a severe depreciation of assets was necessary to deliver an annual report that would live up to certain standards. This, combined with a forthcoming reduction of sales from “cottages” in Lalandia, made shareholders concerned. The aim of this master thesis is therefore to valuate Parken Sports & Entertainment through a strategic analysis and set an aim for the share value. To do this the thesis is divided in tree steps; a fundamental analysis, budgeting and valuation. These tree steps individually analyze specific topics that will contribute to setting an aim for the share value. The fundamental analysis contained both a strategic and an accounting analysis that show different essential factors. By the usage of relevant economic accepted models such as PEST, Porter Five Forces and SWOT the strategic conclusion were that each business area were affected by different factors and there was a definite potential to gain a positive cash flow. The accounting analysis is to show historical trends through relevant key measurements in the last five years annual reports by making both income statement and the statement of the financial position reformed for analysis purpose. The general trends were a high financial gearing and a negative development in almost every aspect. The conclusion from the fundamental analysis is the key input in making the five year forecast of both the income statement and the statement of the financial position. By evaluating factors of both financial and non-financial a forecast was made to usage in the last step regarding the actual setting of the share value. The final object was to evaluate a given share value by using the above fundamental analysis and budget. By using the DCF-model it was possible to estimate a given share value. The conclusion was that Parken Sport and Entertainment A/S at present time is overrated and from that conclusion it is not possible to give a recommendation to buy shares at Parken Sport & Entertainment A/S.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||106|