Værdiansættelse af Bang & Olufsen A/S

Abstract

Bang & Olufsen A/S has experienced a significant decrease in the stock value, and the purpose of this thesis is to estimate the current market value of Bang & Olufsen A/S. The valuation is based on three steps, the first being a strategic analysis, analysing the macro environment, the industry and company specific level. The second step conducts a financial analysis of the historical performance and risk of the company. Finally the third step consolidates the findings from the strategic and financial analysis into a forecast and valuation part. B&O hired a new CEO in AUG 2008 and several initiatives have already been launched. In order to lower costs basis components are beeing developed to be used in all products, the global sales organization has been consolidated from seven separate organizations into one, and B&O are moving back to basics in respect of core business being audio and video products. The one sided bet on plasma TV’s is being re‐evaluated, thereby meeting the possible demands from the EU and proactive consumers. The financial analysis evaluating the historical performance in general show a positive trend in the first years of the evaluated period, however the key financial performance indicators all develop negatively in 2007/08 as a result of bad strategic choices and a challenging macro economic environment. The consolidated strategic‐ and financial analysis generated the foundation for a 5‐year forecast followed by a terminal period estimating future revenues, investments and costs. From the forecast the free cash flow was estimated and discounted by the estimated weighted average cost of capital (WACC) providing the net present value of the budget‐ and terminal period. The market value of B&O is estimated to DKK 1.779bn justifying a share value of DKK 49.