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 based on a strategic and financial analysis. In 2001 the two fashion competitors InWear Group A/S and Carli Gry International A/S merged into IC Companys A/S. The combination of the two companies makes IC Companys one of the largest fashion manufacturers in Northern Europe. 55% of the sale in 2010/2011 took place in Scandinavia, which makes Scandinavia the primary market. The company strives to provide high fashion clothes to quality conscious men and women through 11 different brands. The 11 brands take care of their own value chain, but are supported by a common service unit, which contains the non-brand specific functions such as logistics, legal, IT, HR, finance and administration. The service unit allows every single brand to focus on their core business, which is to promote, develop and increase sale. The strategic analysis showed that IC Companys’ main strength is the multibrandstrategy, which allows the individual brands to keep focus on the brand, and in the meantime IC Companys can use the knowledge and competences from all the brands to develop the whole business. Eventhough IC Companys have had some rough years through the financial crisis, with small increases in turnover, the 2010/2011 turnover was increased by 12% from the year before, with a turnover of 3.925 million DKK. Based on the results of the strategic and financial analysis, budget and assumptions the estimated price per share was calculated to DKK 217,81 using the DCF-model. A sensitivity analysis showed that the estimated price was highly sensitive to changes in the underlying assumptions, growth in turnover, WACC and capital structure. The market price was DKK 221 per share on 30 June 2011. The calculation together with the sensitivity analysis showed that a price on a share is more than just a number. Many soft facts such as confidence, ethics, history and special connection to the company can influence a potential investor to buy the share eventhough the estimated price is higher or lower than the market price.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||95|