The main purpose of this thesis is to perform a valuation of the Danish fashion company IC Companys A/S as of 30 June 2011. Our thesis is split into three parts, each contributing to our indication of IC Companys value: 1 the strategic analysis 2 the budgeting 3 the valuation The company is one of Northern Europe's largest manufacturers of fashion, and has a multi-brand strategy consisting of eleven portfolio brands. IC Companys provides international fashion clothes to quality-conscious men and women, primarily in Scandinavia and Northern Europe. The strategic analysis showed that IC Companys main strength is the multi-brand strategy consisting of eleven different fashion brands, each with separate design and management teams. The brands are supported by a shared platform providing IT-systems, marketing, distribution, logistics etc. Furthermore the strategic analysis showed that the consumers' consumptions will decline even more than it already has, the next two years because of the economic crisis in Europe. Based on the strategic analysis, we developed budgeting for the next five years 2011/12 - 2015/16. We used the budgeting for the DCF-evaluation. The DCF-evaluation resulted in an estimated share price at DKK 240.8. Therefore, it is recommendable to buy shares in IC Companys at the market price of DKK 221 as of 30 June 2011.The estimated share price is based on assumptions made on basis of the strategic financial analysis. The sensitivity analysis showed that the results are highly affected by changes in the underlying assumptions.
|Educations||Graduate Diploma in Financial and Management Accounting, (Diploma Programme) Final Thesis|
|Number of pages||104|