Vestas stock valuation

Morten Bjarne Paaske & Jonas Petersen

Student thesis: Bachelor project


Our curiosity regarding how stocks are prized, became the basis for this project. We are
used to seeing stock prices going up and down and in the later years seen stock markets
collapse. The underlying phenomenons behind all these events are what is interesting to us,
how do they affect the stock prices and why.
Vestas have for over a decade been one of the biggest windmill manufacturers in the world.
They managed to sustain their position despites heavy economic losses by merging with
other companies.
With all this in mind we sat out to investigate the reasoning behind the company's downfall
and their latest record breaking revenues. This is done by examining firstly the internal and
external non financial elements that affect their potential future revenue. These elements are
followed up by a restructuring of the company’s annual report, as a means to analysing and
budgeting their future cash flows, so that a stock price can be calculated using the
discounted cash flow model.
This leads us to the following thesis statement: What price should a Vestas stock have per
based upon our strategic and profitability analysis.

EducationsBusiness Economics, (Bachelor/Graduate Programme) Bachelor
Publication date23 May 2016
Number of pages57
SupervisorsJørgen Ravn Elkjær