Strategisk analyse og værdiansættelse af Coloplast A/S

Christian Salmon Brandt

Student thesis: Master thesis

Abstract

This Master’s thesis is intended to give a financial analysis and valuation of Coloplast A/S. By doing that, I am valuing the company’s stocks as of October 31st 2013. To determine the stock value of Coloplast, I have analyzed the internal and the external factors, which influence Coloplast. In addition, I have analyzed their financial statements to calculate the conditions used in the valuation. Coloplast is a global company, with more than 8.500 employees worldwide. They operate in four different markets: ostomy, continence, urology and skin- and wound care. Ostomy and continence is their main markets, where the majority of their income is earned. One of Coloplast’s biggest strategic concerns is that the maximum prices of their products are decided by the governments in the countries they do business. Also the exchange rates in the countries they do business, has a big impact on the financial result. To reduce this threat from the exchange rate fluctuations, Coloplast is making forward contracts, which lowers the external risk of the company. Coloplast’s ability to be innovative is one of their biggest strengths. Their products are some of the best on the market, which is very important to the consumers, because the use of their products is still a bit taboo. The markets are highly driven by the demographic development. The number of the elderly population is set to rise in the coming years, and that makes the potential market for Coloplast bigger. The financial statements of the last five years have been very positive. Their revenues have increased every year by at least 5 % and that have made their net profit increase every year too. The estimation of the stock value is set to be 445.53 kr. per stock. That means that Coloplast is undervalued according to these calculations. The reason for this can be the difference in the calculated WACC and the budget conditions. The scenario analysis show that the value of the company can change with the budget conditions. With a change in WACC and in sales growth in the terminal period of ± 5 %, the company’s stock value can be worth 404 kr. per stock if the conditions change negatively and 495 kr. per stock if the conditions change positively.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2014
Number of pages97