Valuation of the Vestas Wind Systems A/S Company under Risk

Jingyi Liu

Master's thesis

Abstract:

The purpose of this thesis is to give valuation of the Vestas Wind Systems A/S Company under Risk. In order to achieve this goal, theories related to course " Valuation and Acquisition", " Financial Model" and " Cooperate Finance" will be applied as the theoretical foundation. Besides, software like "Excel" and "STATA" will be used as supportive tools for data analyzing. To do the valuation logically and precisely, this thesis will be divided into five parts in total. Among them, three chapters are core of the valuation procedure and the core starts with the method presentation. The first chapter briefly introduce the goal and constructions of the thesis. The second chapter describes the chosen valuation method, alternative methods and formulas within the using method. The third chapter is about company presentation include the history, track record of company Vestas, etc. The forth chapter is the application of valuation by two-stage DCF model and the last chapter is the summary of whole thesis as well as the comparison of estimated company value and the book value of the company.

Abstract:

The purpose of this thesis is to give valuation of the Vestas Wind Systems A/S Company under Risk. In order to achieve this goal, theories related to course " Valuation and Acquisition", " Financial Model" and " Cooperate Finance" will be applied as the theoretical foundation. Besides, software like "Excel" and "STATA" will be used as supportive tools for data analyzing. To do the valuation logically and precisely, this thesis will be divided into five parts in total. Among them, three chapters are core of the valuation procedure and the core starts with the method presentation. The first chapter briefly introduce the goal and constructions of the thesis. The second chapter describes the chosen valuation method, alternative methods and formulas within the using method. The third chapter is about company presentation include the history, track record of company Vestas, etc. The forth chapter is the application of valuation by two-stage DCF model and the last chapter is the summary of whole thesis as well as the comparison of estimated company value and the book value of the company.

Keywords

Valuation, Financial Modelling, Two-stage Discount Cash Flow (DCF) Model, Free Cash Flow of Firm (FCFF), Pyramid decomposition, Method of gradual changes, Vašiček Model, Simulation of Random Variables, Regression analysis, Probability Distribution

Keywords

Valuation, Financial Modelling, Two-stage Discount Cash Flow (DCF) Model, Free Cash Flow of Firm (FCFF), Pyramid decomposition, Method of gradual changes, Vašiček Model, Simulation of Random Variables, Regression analysis, Probability Distribution

Language used: English

Date on which the thesis was submitted / produced: 27. 4. 2018

Thesis defence

• Date of defence: 29. 5. 2018
• Supervisor: Miroslav Čulík
• Reader: Aleš Kresta

VŠB - Technical University of Ostrava

Ekonomická fakulta

Master programme / field:
Hospodářská politika a správa / Finance