Strategisk regnskabsanalyse og værdiansættelse af IC Companys A/S

Nadia Mohammed Awad

Student thesis: Master thesis

Abstract

The purpose of this thesis is to prepare a valuation of one of Scandinavia´s largest fashion companies, namely IC Companys A/S. The company is listed on the NASDAQ OMX Copenhagen and the estimated share price will be compared with the market price of the share on 01.07.13 at price 122. Below it will be assessed, whether the company is strategically well-positioned and thus create value for its shareholders. Generally, the thesis is divided into four parts consisting of a strategic analysis, financial analysis, budgeting and valuation. The strategic analysis consists, of an analysis of the factors that influence the company´s value creation, which applies to both external, industry and company-specific factors. Below it will be highlighted that the clothing industry depends on consumer demand, which is also dependent on the overall economy. In other words, are movements in the company’s operating performance as well as its stock price, strongly correlated with the economic growth. Further, the clothing industry characterized by a high level of competition, due to the many providers and the low level of growth in the European market, which increases the need for strong brands. In this context it is considered IC Companys multibrand-strategy, to be a major strength. This is because this is aimed at all industry price segments and thus a wide range of consumers. The strategic- and financial analysis will be used, to develop a proforma financial statement of IC Companys A/S. The stock is subsequently valued based on three different scenarios, the basic scenario and the best-case and worst-case scenario, based on the proforma financial statements. Using the so-called Discounted Cash Flow model, the share price was estimated to 205 DKK in the basic scenario, which represents the most likely outcome of the company´s future, while the share price in the best-case and worst-case scenario were estimated respectively of 267 DKK and 75 DKK.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2013
Number of pages125