Valuation of Oyj

Susanne Jenni Helena Tukia

Student thesis: Master thesis


The purpose and objective of this thesis was to determine the intrinsic value per share of the Finnish online-based retailer Oyj per 31.12.2017 by using academically renowned model as well as, publicly available information on the market and company. Company valuations allow practitioners and scholars to find common ground where usually a clear separation exists. What often falls in the realm of a case study is here emphasized by academic theory, while bearing in mind the practicality and origin of company valuations as a whole. The approach to this valuation was twofold: Firstly the strategic analysis, along with the background information for the valuation, took into account macroeconomic elements, industry features as well as internal elements of Oyj. Then, a prudent theory-based financial analysis was carried out to determine value drivers for the purposes of first forecasting and finally valuing Oyj. While the financial analysis was adept in providing valuable information in regard to the historical performance of Oyj, a choice of adding similar financial key ratios from a comparable firm was made to further the economic insight provided by these figures. The forecasting process was made using realistic estimates and expectations on the overall economy as well as company-specific development of Oyj, for a period of eight years spanning from 2018 to 2025. The main elements from the forecasting chapter were then utilized in the discounted cash flow valuation, and finally in the multiplier analysis that confirmed the results. The finding was a share price of 7,72EUR, which was in line with Oyj’s share price development at end of 2017, but as pointed out in the strategic analysis, a speculative piece of news that was broken in early 2018 sent the share price to a steep decline, from which we deduct that the share price of Oyj was at end of year 2017 and is today, May 13th 2018, underpriced.

EducationsMSc in Finance and Investments, (Graduate Programme) Final Thesis
Publication date2018
Number of pages69