A Strategic and Financial Analysis and Valuation of Trackman A/S

Abstract

This thesis investigates the fundamental valuation of Trackman A/S as of December 31, 2024. Through a structured combination of strategic analysis, financial statement reformulation, and value estimation, the study seeks to determine the enterprise value of Trackman A/S, a growth-oriented, privately held technology company operating in the sports and entertainment industry. The strategic analysis highlights the industry dynamics in which Trackman operates, identifying key structural characteristics such as high entry barriers, ongoing technological innovation, and brand-driven customer loyalty. Trackman’s positioning is further strengthened by its global reach, technological first-mover advantages, and long-standing relationships with a professional customer base. Nonetheless, the company faces certain risks, including intensifying competition, innovation pressure, and macroeconomic uncertainties. These strategic insights and financial findings provided the basis for developing realistic budgeting assumptions, which were essential for the subsequent valuation models. To assess financial performance and long-term value creation, the thesis applies a detailed financial statement analysis, revealing high profitability, strong return on invested capital, and solid equity returns, despite recent shifts due to growth-related investments and product diversification. Building on this foundation, a ten-year financial forecast is conducted, reflecting expectations for revenue growth, margin development, capital expenditures, and working capital changes. The valuation is then conducted using two equivalent valuation models: the Discounted Cash Flow (DCF) method and the Economic Value Added (EVA) approach. Both models apply a consistent set of assumptions and aim to validate the estimate from different methodological perspectives. The analysis results in a calculated enterprise value of DKK 9,036 million, supported by both valuation approaches. Sensitivity analysis emphasizes the importance of key assumptions – particularly the Weighted Average Cost of Capital (WACC) and growth rates – but overall confirm the stability of the estimate. Overall, the thesis demonstrates how an integrated approach combining strategic insights, accounting reformulation, and established valuation techniques can produce a well-founded assessment of company value in a dynamic and innovation-driven market.