| dc.description.abstract | This master thesis conducts strategic analysis and a fundamental valuation of the company
P/F Bakkafrost in order to find the company`s intrinsic value. Bakkafrost is the largest
aquaculture company in the Faroe Islands, harvesting and selling first class salmons. The
company is noted on the Oslo Stock Exchange with a share price of 605 NOK and a market
capitalization of 35,8 billion NOK (as of 31.05.20).
I use the enterprise discounted cash flow model and a relative valuation analysis, weighting
them 80% and 20% respectively and arrive at a price target of 674 NOK, an upside of 11% to
the current share price. The relative valuation gave a price target of 481 NOK, a downside of
20% to the current share price, and the DCF model gave a price target of target of 723 NOK,
an upside of 19% to the current share price.
In conclusion, based on my valuation analysis, Bakkafrost appear to be a solid company that
historically have delivered operational performance way above peers and there is still is a
buying opportunity given today’s stock price. | en_US |
