Strategisk Analyse og Værdiansættelse af PANDORA

Claudia Kirchhof Lassen

Student thesis: Master thesis


The price of Gold is affected by many macroeconomic factors and it is generally accepted that the price of gold is somewhat affected by economic crises, like the most recent one of 2008. Listed companies such as PANDORA use gold as a one of their main commodities, and with attention drawn to their recent listing on the stock exchange in 2010, the company’s share price value fell drastically until 2012 and then increased to a level that has led to skepticism of whether the company’s shares were overvalued by investors. With gold prices reaching drastically high prices in 2012 that began to decrease shortly afterwards, could the price of gold be to blame? The goal of this thesis was to research the value of PANDORA’s shares and the degree to which the company’s share value correlates to the price of gold. The method used to answer the first part of this proposed question was a fundamental analysis that drew on qualitative data regarding the company, a financial statement analysis and a valuation of the company using an absolute valuation model to calculate a share price value. The results of the analysis were that PANDORA’s share price value is just above the current share price on the stock exchange. When this price was tested using a relative valuation model, which considers the competitors’ share prices, the results led to the conclusion that PANDORA’s share price value and the current share price on the stock exchange were overrated. Taking into account the information collected and the understanding of PANDORA’s corporate world and existence, the last part of the analysis consisted of exploring the degree to which the share price values correlated to the price of gold. This consisted of visually looking at the development in the historical gold prices and historical share prices for PANDORA and its two competitors over the period of analysis whilst taking into account the discoveries made during the valuation process. The results of the analysis led to the conclusion that PANDORA’s share price value and the price of gold were indirectly correlated and that the share price is potentially at risk of being negatively impacted by fluctuations in the price of gold. To fully comprehend the degree to which the price of gold and the share prices are correlated, an independent study would be required, as the results of the analysis were inconclusive for this part of the thesis question. Due to this, it was brought into perspective that a further study of this would enable researchers take a closer look at measures that PANDORA could take into consideration and that could potentially affect the price of gold, for example investing in gold themselves. Finally, it was also discussed in what or which ways PANDORA could take their sustainable business model to the next level.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2015
Number of pages121