Valuation of Royal Unibrew

Christian Nexø Stoklund

Student thesis: Diploma thesis


This paper observes Royal Unibrew, a Danish brewery. The purpose of this paper is to calculate the share price of Royal Unibrew who is listed on the NASDAQ OMX Copenhagen Stock exchange. The purpose is to examine whether the share price of Royal Unibrew listed as of 1st April was a fair estimate of the share price.
Royal Unibrew is the second largest brewery in Denmark. It operates mostly in Europe, with the biggest revenue coming from Denmark and the Baltic countries. Over the last years, Royal Unibrew have been focusing on expansion. They purchased three of their competitors in 2017and 2018. The company is also distributing products from PepsiCo and Heineken.
The paper is divided in four chapters. The first chapter includes an introduction to the main topics of this paper as well as the questions intended to examine the share price of Royal Unibrew. This section further includes the purpose of the paper.
The second chapter will introduce theory and different models that will be used in this paper. This section will also explain the history of the company and the company’s current strategy.
The third and fourth chapter will go through the analysis of finding the value drivers for the company. The value drivers will be able to conclude what factors that are important to the company when the budget is made. This section will include the thorough analysis of the company’s value and the share price.
My finding shows that the price of the shares as of the 1stof April is valued close to the fair value. This paper shows that calculating the value of a firm with a Discounted Cash Flow model has some implications. Only small changes in the input to the model can change the price significantly. There is also factors that easily can be forgotten when a fundamental analysis is being used. Most of the focus when doing a fundamental analysis is pointed to the annual reports. But the investment markets are not perfect and there can therefore be factors outside from the financials that needs to be calculated when looking at the final value.

EducationsGraduate Diploma in Finance, (Diploma Programme) Final Thesis
Publication date2020
Number of pages83