Strategic financial statement analysis and valuation of Aker solutions ASA

Farstadvoll, Haakon Simonsen
Master thesis
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http://hdl.handle.net/11250/2454803
Date
2017
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Abstract
The purpose of this paper is to estimate the fair value of Aker Solutions ASA per 31.05.2017.

The fair value is held up against the market price to make a recommendation as to what

investment strategy an external, well-diversified investor should follow.

The strategic analysis concludes that Aker Solutions has a potential strategic advantage in the

longer term, but faces strong challenges in the market in the short term.

A fundamental valuation by a DCF approach is used as the main technique for estimating the

fair value. The valuation is supplemented by a multiple analysis. The fundamental valuation

gives an estimate per 31.05.2017 of 43,05 NOK/share. It is supported by the relative valuation

of 53,74 NOK/share.

Per 31.05.2017 the shares are traded at a discount relative to fair value of 3,4%. Given the

uncertainty in the estimates, a neutral investment strategy is recommended. The conclusion is

that an investor should hold shares of Aker Solutions ASA.