Strategic financial statement analysis and valuation of Aker solutions ASA
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.