|The purpose of this master's thesis is to estimate a theoretical equity value of SalMar ASA
and thereby value per share on 26.04.2019. The valuation was mainly based on a fundamental
valuation, supplemented by a method of comparable companies valuation. In the fundamental
valuation, the enterprise value was estimated by discounting expected future cash flows to
present value. In the comparable companies method multiples have been utilized to provide a
The first part of the thesis provides a presentation and strategic analysis of SalMar and the
aquaculture industry. We found that the largest opportunities for the industry lie in
technological innovations, which have the potential to improve environmental conditions. The
competitive advantage with through the harvesting facility InnovaMar and offshore fish
farming facilities, but also a marginal competitive disadvantage due to strong presence in
regions with high levels of salmon lice.
The insight gained from the strategic analysis created a foundation that allowed us to perform
a financial statement analysis of SalMar and the industry, followed by a forecast of future
performance. A base, bull, and bear case were presented to reflect different future outcomes.
After combining the outcomes and using fundamental valuation to discount the future cash
422. Furthermore, the
comparative valuation using multiples gave an estimate of NOK 230 per share.
By weighting the fundamental value estimate 85% and the comparative value estimate 15%,
the conclusion falls on a final value estimate of NOK 393.6 per share. Thus, we issue a hold