Strategisk analyse og værdiansættelse af Softbank

Emil Bjørn Meincke

Student thesis: Master thesis

Abstract

Softbank is a service provider in the mobilephone industry, which is best compared to TDC in Denmark. Besides their core activity, Softbank has several strategic long term investments which are best described as Asia’s (Chinas) copies of large western internet successes. To name a few these include: Ebay & Amazon (Alibaba Holding), Paypal (Alipay), Youtube & Netflix (PPTV/Ustream) and Facebook (Renren). The primary objective of this assignment was to answer the question: what is Softbanks fair value. This problem was solved by using the traditional structure used in the course Financial Statement Analysis and by using the principles of valuation in a creative manor. The value of Softbanks core business area was determined through the completion of a strategic analysis and a financial statement analysis, which lead in to a pro‐forma budget. This budget was used as in‐data for a DCF‐ and an EVA model, which calculated a value of ¥2.182.313 mio. after debt and minorities1. The transparency of Softbanks long term internet related investments was obtained through the completion of a strategic analysis. The transparency made it possible to adjust a wide variety of multiples used in the overall valuation of Alibaba Holding and PPTV. Combined with the market value of Softbanks listed companies the long term strategic portfolio was valued at about ¥575.000 to ¥750.000 mio. after tax. The combined value of Softbank was estimated at ¥2.800.000 to 3.000.000, which did not offer an attractive risk/reward currently as the stock jumped 40% during the assignment. The strategic analysis focused on Softbanks participation in the restructuring of the Japanese mobile industry provoked by a new generation of data intensive users. Topics contained the implementation of the LTEnetwork, FMC strategy and spectrum. Further I focused on Japans economy and short‐ and long term demand characteristics such as design, price and value added services. The strategic analysis focused on Alibabas and PPTVs placing in a high‐growth environment, where internet penetration and advertisement budgets would drive up the revenue. The conclusion was overall positive even though there were major risks as the intensity of the competition and costs. The financial statement analysis concluded that Softbank is in a good financial shape and their usage of resources has improved.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2012
Number of pages174