Værdiansættelse af LM Glasfiber

Kim M. Hansen & Henrik A. Poulsen

Student thesis: Master thesis


The primary purpose of our candidate assignment, on the basis of a strategic financial analysis, is to estimate the value of the Danish world leader of vings to the windmill manufacturing: LM Glasfiber A/S. We wish to give answers to several problems, which among other things, is whether the annual report underestimates the value of the core areas in LM Glasfiber A/S in their fixing of the total shareholders equity. Furthermore, we would like to supplement to the traditional financial analysis some concepts with foothold in the value way of thinking, in order to obtain a more varied view of LM Glasfibers financial development through our financial analysis. To evaluate the financial statements by LM Glasfiber it has been necessary to reformulate the financial reports thoroughly. We have used the Discounted Cash Flow model for the valuation of LM Glasfiber value. The valuation of LM Glasfiber comes from estimated budgets in the period 2008-2010 for the company. In our strategic analysis of LM Glasfiber, from our SWOT analysis, we can conclude that the strong sides of the company are innovation, cost effectiveness and a good environmental profile. The possibilities for LM Glasfiber are the increasing demands on environmental friendly energy sources and expansion to new markets for instance China and India. The threat lies in the relative dependency on political currents and increasing market shares for large competitors. In a valuation process it is essential to estimate the capital cost, Weighted Average Capital Cost (WACC). In our assignment we make an estimation of LM Glasfiber`s capital structure, debt capital cost and equity cost. LM Glasfiber`s equity cost are estimated to be 14,46 % in 2007, which gives a WACC of 9,141 %. After using the discounted cash flow model we have estimated the value of LM Glasfiber at 1.762.487 t.DKK by the 31. december 2007. The observed shareholders equity value at 31. December 2007 was 1.379.540 t.DKK, which was different from our estimated value. On the basis of the estimated prices, we find that the shareholders equity underestimates LM Glasfiber value.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2009
Number of pages122