Comparative strategic financial analysis and valuation of K.W. Bruun & Co. A/S and Semler Holding A/S

Abstract

The car industry has been under a lot of pressure due to the global supply problems and rising demand. The industry is constantly developing and several of the industry actors are fighting hard to maintain the agreements that form the basis of their business. The differences in how the companies present the future have major significance for their continued growth and market shares in the long term. The following paper will focus on the two biggest automotive retailers in Denmark, K.W. Bruun and Semler Gruppen. The purpose of the paper is to identify the value of K.W. Bruun & Co. A/S and Semler Holding A/S per December 31, 2022. Henceforth, the papers will answer the following issue: What is the fundamental value of both K.W. Bruun & Co. A/S and Semler Holding A/S per December 31, 2022, and how will this value be affected by future external threads in the world? The result of the analysis shows that both companies have managed to grow in a market with a lot of insecurity and evolution. To calculate the fundamental value of both companies the discounted cash flow model (DCF) has been used, with the reasoning for it being the most true and fair valuation model. The fundamental value of K.W. Bruun & Co. A/S per December 31, 2022, is 16.280,8 MDKK and the fundamental value of Semler Holding A/S per December 31, 2022, is 13.992,8 MDKK. This sensitivity analysis shows that both the values are mostly affected by the expected growth rate, which is further highly sensitive to changes in the external environment. The analysis of the sensitivity among changes in the external environment shows that the Semler Holding A/S stands stronger than K.W. Bruun & Co. A/S against the future changes in the business. The valuation of K.W. Bruun & Co. A/S is therefore most likely to change in a negative direction where the valuation of Semler Holding A/S is more likely to change into a higher value, based on the changes in the external environment.