Valuation of Scatec Solar: An Investment Case

Milad Sherifi Sakizi & Pierre Andre Aradillos Perroud

Student thesis: Master thesis


A fundamental valuation analysis of the publicly listed solar power producer Scatec Solar ASA is conducted as of 01.03.2018. Based on a strategic, quantitative- and financial analysis a set of findings have been presented. The solar photovoltaic industry has grown remarkably over the years, driven by technological advancements, increased global population, geographical shift in production and declining module prices. In addition, policies and support mechanisms have been hugely important for the competiveness of solar PV. With the Paris Agreement the solar PV industry have benefitted from more attention. The combination of the vertical value chain and the focus on local value creation have made SSO an attractive player in the industry, as they can provide a full-fledged project and will benefit local communities. This has resulted in SSO having operations in multiple markets worldwide. The successful track record of operating in these complex markets have lead serious financial partners to continue their partnerships with them. As of 01.03.2018, SSO have 322MW in current projects, 394MW under construction, 789MW backlog and a pipeline of 745MW. Following numbers shows a promising outlook for the company in the forecasted period. In view of these findings, a target price of NOK 58.41 indicates that the share price is undervalued with a potential upside of 36.31%. Even though the estimated share price is exposed to uncertainty, there is less uncertainty associated with the potential upside of SSO’s share price. Accordingly, a buy recommendation is considered appropriate for SSO.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2018
Number of pages144