Værdiansættelse af Nobia AB

Andreas Midtgaard

Student thesis: Master thesis


The main objective of the thesis has been, completing a valuation of Nobia, a Sweden based corporation engaged in manufacturing- and distribution of kitchen. The flowing thesis includes a corporation introduction, followed by a strategic and financial analysis. Based on these three analyses subsequently leads to budgeting and a valuation of Nobia. The valuation of Nobia is based on a primary (DCF & EVA) and secondary (EV/EBITDA) valuation model. Where the secondary valuation model, function as a “sanity check” of the primary valuation model. As well the value of the primary valuation model was tested, for its sensitivity towards changes in the underlying variables, hereby creating a best/worst-case scenario. The primary valuation showed a base-case value of SEK 44.2 (WACC 9.46 %), incinerating that the stock is currently trading at a discount of SEK 9.6 (21.7 %). Therefore my recommendation is; increase holding/buy. Evenso, I am concerned about Nobias logistical setup and the unclear differential strategy for Nobias brands. Moreover, I am concerned about the historically weak BNP in Europe and recession signs from France, due to de financial crises. This development has led costumers shifting downwards, lower price-segments, on expense of Nobias primary mid-segment. However, the management team has since 2010 managed to reduce the costbase and the invested capital, which have led to an increase in EKF and ROIC. Also, the turnaround of Hygena seems to give positive sign in terms of higher volume and efficiency within the refurbished stores. Looking at the relative valuation, Nobia is trading at a 2013E EV/EBITDA of 8,97x, which gave at base-case value of SEK 41.0. As the value is only SEK 3.2 lower the primary valuation it is concluded that the relative valuation verifies the validity of the primary valuation estimates.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
Publication date2013
Number of pages108