Strategisk analyse og værdiansættelse af TDC

Thomas Munch Vestergård

Student thesis: Diploma thesis


TDC A/S is the greatest telecommunications provider in Denmark. In February 2006 a group of five private equity funds established, Nordic Telephony Company (NTC) and bought 87.9 % of TDC. The ownership from NTC has had a lot of influence on TDC and a lot of operations around Europe have been sold off and TDC is now focused in Denmark. The purpose of this dissertation is to assess the value of TDC, to decide whether the share price of 42.24 on the first of April 2011, is a fair value of the stock. If the share price is underestimated the share is attractive for a potential investor. Furthermore it will be analysed weather buying TDC has been a good investment for the private equity funds. To judge whether the TDC share is attractive for an investor, this dissertation contains both a strategic analyses and a financial statement analyses, which create information to the later budgeting for following years. The competition between the telecommunication companies in Denmark is very strong. TDC is the market leader in Denmark and plans to make great investment in infrastructure which expects to give the company a competitive advantage. The analyse of the future growth opportunities shows that a fair value of the TDC share on the first of April 2011 is 45.87. This shows that the share is underestimated with about 8 %. NTC invested 16.1 billion of equity capital when they bought TDC and through the last 4 years they have made some smaller pay outs. In December 2010 NTC decided to sell out stocks in TDC. They brought down their ownership from 87.9 % to 59.1 % of TDC. The analyse shows that the return on equity in NTC has been 5.63 %. Normally the private equity fund requires a return on equity of 20-25 %. Therefore NTC cannot be satisfied with the investment of TDC.

EducationsGraduate Diploma in Financial Planning, (Diploma Programme) Final Thesis
Publication date2011
Number of pages109