Valuation of Royal Unibrew A/S

Malik Cevher

Student thesis: Master thesis


The study examines Royal Unibrew’s market value of equity from an external analytics point of view. The valuation is based on a discounted cash flow method, which requires a lot of inputs. The study is therefore parted in three parts, an analysis of Royal Unibrew’s strategic position, an analysis of their financial performance the last five years and finally determination of a discount rate, in this case WACC is used. Eventually the valuation of the equity on 1. September 2020 can be done based on a forecast, which takes place on the base of the analysis of the strategic and financial position. It becomes clear that Royal Unibrew the last five years has strengthened their strategic and financial position.
The study’s results indicate that Royal Unibrew’s value of equity is overestimated, despite their strengthened positions the last five years. Besides the discounted cash flow method, the study has also made a valuation based on multiples to undermine the results of the discounted cash flow method. Despite Covid-19 restrictions and lockdowns has Royal Unibrew done well financially, compared to 2019 numbers. The results of the valuation based on multiples indicates that Royal Unibrew’s value of equity is overestimated. Both methods confirm that Royal Unibrew’s value of equity is overestimated.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2020
Number of pages63