Valuation and financial analysis of Farstad Shipping ASA
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- Master Thesis 
This paper analyses the fundamental value of Farstad Shipping ASA, a leading offshore supply vessel (OSV) firm. Based on a strategic and financial analysis; trading range is found to be 130-190 NOK. The primary valuation method, a DCF model, concludes that the firm should be priced at 178 NOK, indicating that the company is undervalued with an upside of 21% from current trading levels.1 This claim is also supported by a relative valuation. The paper begins with a strategic analysis reviewing the present state of the OSV industry and the firm’s position following the Financial Crisis, then turns to the financial analysis which constitutes the main part of this paper. The financial analysis consists of a fundamental, relative and asset-based analysis. Given the results from the fundamental analysis at 178 NOK, the relative analysis at 187 NOK and the asset-based valuation at 132 NOK; the share is given a buy recommendation with a target share price of 178 NOK.