Værdiansættelse af Pandora A/S

Khaled Mohammad Hussein

Student thesis: Diploma thesis


Pandora A/S is an international Danish jewellery manufacturer and retailer founded in 1982. The Company is known for its customizable charm bracelets, designer rings and necklaces. Pandora became stock listed on the NASDAQ OMX Copenhagen stock exchange in 2010. The opening stock price was at 210 in the morning and only half an hour later it was increased to DKK 238. The stock price increased rapidly to DKK 366 within a half year and in the same year 2011 the stock price decreased to DKK 54. A few years later in 2016 the stock price increased to DKK 999,5 and December 31, 2019 the stock price decreased to DKK 279,1. The development of the stock price is very interesting and makes us wonder if the current stock price is determined correctly.
The purpose of this project is to estimate a valuation of Pandora A/S to determine the stock price December 31, 2019. In order to do that the valuation, must be divided into a strategic section, a financial- and profitability section, budgeting and the valuation itself.
The strategic analysis includes an analysis of the external- and the internal environment. An analysis of the external environment consists of a PESTEL analysis which is used to analyze the outside world and Porters Five Forces which is used to analyze the jewellery industry. An analysis of the internal environment includes an analysis of Pandora’s products and value chain.
The financial analysis includes prepared statements and a profitability analysis over Pandora’s past five years. Based on the strategic analysis, financial analysis as well as the profitability analysis, a five-year budget will be prepared for Pandora. With the help of the budget, Pandora’s five-year cash flow will be estimated, and the terminal value determined.
Based on several underlying drivers, WACC will be calculated. A valuation of Pandora can now be made. Based on the determined terminal value and calculated WACC, Pandora’s future free cash flow will be discounted, and the stock price will be calculated using the DCF model. Due to the uncertainty associated with the calculated stock price, a sensitivity analysis will be made on primary variables.
The stock price was calculated to DKK 777,7 per 31. December 2019. The market stock price was 279,1 per 31. December 2019. It can be concluded that the market stock price is underestimated when the stock prices are compared.

EducationsGraduate Diploma in Accounting and Financial Management, (Diploma Programme) Final Thesis
Publication date2020
Number of pages95
SupervisorsOle Sørensen