SAS: ”We are Travellers”

Mark Stenild Nielsen

Student thesis: Diploma thesis


This assignment is about valuing SAS, where the prerequisite for valuation is through a strategic and
accounting analysis. The main problem in the assignment is whether the price of the SAS share is
theoretically valued correctly.
This task starts with a description of the company SAS, and how it looks and the company's long history.
The company's current strategy has been explained and explained in this section.
In Chapter 4, SAS's environment and industry's intensity of competition are analyzed. The world-wide
model has been used to explain the factors in the business environment that the company can’t control
itself. Subsequently, Porter's Five Forces have been used to analyze industry's competitive intensity. This
section also analyzes the company's primary competitors, which compares traffic data and growth in
companies, etc. Finally in Chapter 4, an assessment has been made of SAS's strategic options and how the
strategy has evolved earlier in the company's history.
In Chapter 5, an accounting analysis has been carried out over the last 5 years' accounts and the impacts
that a changed accounting policy has had on the company during the period. The historical data shows a
company that has difficulty in earning earnings, where it has only been satisfactory for a year.
In chapter 6 of the assignment, a budget has been made for the company over a 5 year period and a
terminal period. This budgeting is based on the assignment's capital 8, where the final valuation is made.
The company's capital structure has been analyzed and defined in Chapter 7 of the assignment, where
calculations and analyzes have been made of the return requirements for equity and foreign capital. In
addition, the weight distribution of equity and foreign capital has been calculated so that it has been
possible to calculate WACC, which is also used for the final valuation of the subsequent capital.
In the final valuation in Chapter 8, the theoretical value of the model, The Discounted Cash Flow, has been
calculated, which shows a value of 22.74 SEK per share which means that the company with the
assumptions of the assignment is undervalued on the market.
In Chapter 9, a sensitivity analysis has been conducted about WACC and the company's development in
revenue. The following chapter has the overall conclusion of the assignment.

EducationsGraduate Diploma in Finance, (Diploma Programme) Final Thesis
Publication date2017
Number of pages111