License to krill : aA fundamental valuation of Aker BioMarine
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- Master Thesis 
In this master thesis, we have conducted an extensive strategic and financial analysis of Aker BioMarine. The thesis aims to estimate the fair intrinsic value of the equity and share price as of October 30, 2020. The fundamental valuation technique has been chosen as the preferred method and is supplemented with a relative valuation. The final estimation of the stock price was compared with the closing price on October 30 to find the appropriate trading strategy. The thesis can be divided into two parts: The first part introduces the industry and its companies, along with an in-depth presentation of Aker BioMarine. After presenting the industry and the company, the frameworks and theories adopted in the thesis are presented. Further, the strategic analysis is conducted. The analysis includes both external industry analyses and an internal resource-based analysis complemented with an ESG assessment. The external analysis discovered that the industry has high entry barriers with a moderately competitive environment, indicating the possibilities to sustain a long-term competitive advantage. The internal resource-based analysis indicates that the brand name, value chain, patents, and strategic collaborations represent the vital competitive advantages Aker BioMarine possesses. However, the analyses suggest that competitive advantages will be decreasing in the long run. The first part of the thesis concludes with reorganizing and analyzing the company's historical financial performance. The analyses are key for understanding the investment case of Aker BioMarine but have their limitations for future projections as Aker BioMarine is a high-growth case. The second part of the thesis commences with a forecast of the future performance of Aker BioMarine based on the strategic and financial analyses conducted in the first part. Further, the company's cost of capital and capital structure is forecasted to find the dynamic weighted average cost of capital. The fundamental valuation is presented after the cost of capital is presented using discounted cash flows, and economic value added. The last chapter before the conclusion of the thesis is the relative valuation. Based on the analyses in the first part and the projections in the second part, we have valued the fair market value of the equity to be NOK 101.67 per share, indicating a potential upside of 23.98% as of October 30, 2020. The thesis concludes with a “BUY” recommendation and ends with comparing our valuation and the investment banks' estimates.