Publicação
Equity research - D/S Norden A/S
| Resumo: | The present Master Final Work Project consists of a valuation of D/S Norden A/S (Norden) for the year end of 2022. Following the CFA Equity Research contents, the present report starts with a brief description of the company, followed by an analysis of its operating segments, Dry Operator and Tanker Operator, with a depth industry analysis, through the analysis of the key demand and supply drivers. Subsequently, we performed the forecast of the main financial statements for 2021F-2025F, through the use of several assumptions, in order to obtain 2022 YE Price Target. In order to obtain the Price Target, several different absolute methods and also a relative model, through the estimate of enterprise value multiples as well as equity values multiples, were performed. Our recommendation consisting of a Buy recommendation for Norden with a 2022YE PT of DKK 209.96/ share, using a Dividend Discount Model (DDM), implying a 28.8% Upside potential from August 31st, 2021, closing price of DKK 163.00, although with High Risk. The current undervaluation of Norden is mainly explained due to i) Volatility of freight rates, ii) Expected decrease on vessel operating costs %. In addition, following the company strong financial position, Norden management decided to adopt in 2018, a consistent dividend payment policy of paying out minimum 50% of adjusted result in form of shareholder dividends. Additionally, the management decided in 2020 and 2021F, to deliver additional $50 million in form of share-buyback programs. |
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| Autores principais: | Salvan, Hugo Raphael Zenha |
| Assunto: | D/S Norden Sea Transportation Freight-Rates Dry Bulk Product Tanker Equity Research Valuation Dividend Discount Model Transporte Marítimo Taxas de Frete Avaliação de Empresas Modelo Desconto de Dividendos |
| Ano: | 2021 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | The present Master Final Work Project consists of a valuation of D/S Norden A/S (Norden) for the year end of 2022. Following the CFA Equity Research contents, the present report starts with a brief description of the company, followed by an analysis of its operating segments, Dry Operator and Tanker Operator, with a depth industry analysis, through the analysis of the key demand and supply drivers. Subsequently, we performed the forecast of the main financial statements for 2021F-2025F, through the use of several assumptions, in order to obtain 2022 YE Price Target. In order to obtain the Price Target, several different absolute methods and also a relative model, through the estimate of enterprise value multiples as well as equity values multiples, were performed. Our recommendation consisting of a Buy recommendation for Norden with a 2022YE PT of DKK 209.96/ share, using a Dividend Discount Model (DDM), implying a 28.8% Upside potential from August 31st, 2021, closing price of DKK 163.00, although with High Risk. The current undervaluation of Norden is mainly explained due to i) Volatility of freight rates, ii) Expected decrease on vessel operating costs %. In addition, following the company strong financial position, Norden management decided to adopt in 2018, a consistent dividend payment policy of paying out minimum 50% of adjusted result in form of shareholder dividends. Additionally, the management decided in 2020 and 2021F, to deliver additional $50 million in form of share-buyback programs. |
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