• norsk
    • English
  • English 
    • norsk
    • English
  • Login
View Item 
  •   Home
  • Handelshøyskolen BI
  • Student papers
  • Master of Science
  • View Item
  •   Home
  • Handelshøyskolen BI
  • Student papers
  • Master of Science
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

A valuation of Norwegian ASA in COVID-times

Sjøthun, Kristin Lund; Lyngstad, Inger Louise
Master thesis
Thumbnail
View/Open
2938885.pdf (6.986Mb)
Attachment 1.xlsx (840.0Kb)
URI
https://hdl.handle.net/11250/2788916
Date
2021
Metadata
Show full item record
Collections
  • Master of Science [1555]
Abstract
This thesis aims to estimate the value of Norwegian Air Shuttle ASA, both pre-

COVID and in 2021, to assess the effect of the pandemic. Our thesis concludes

whether support from the government and investors was justified, despite the

general impression that COVID-19 enhanced Norwegian ASA’s financial

challenges.

Entering 2020, the Norwegian airline Norwegian ASA had recently started its

turnaround from growth to profitability. Despite considerable amounts of debt

accrued in previous years, the strategic shift led to an improvement in key financial

ratios in 2019. This improvement was however short-lived. By the time the World’s

health organization declared COVID-19 a global pandemic, its short-term effects

had already begun to unfold. Social restrictions and quarantine regulations affected

peoples’ travel habits and put an abrupt stop to international mobility. In the blink

of an eye, Norwegian ASA went from working towards profitability to being

critically dependent on governmental support to survive. Since the outbreak, the

company has frequently issued new shares to raise additional capital to continue at

going concern.

By using publicly accessible data, this thesis provides a valuation of Norwegian

ASA’s equity as of 15.04.2021. By forecasting financial statements and using the

present value approach to valuation, we arrive at a market value of 9.42 billion

NOK. Conducting a relative valuation did not change this value estimate. We also

conducted a second valuation of the company before COVID-19 to isolate the

effects of the pandemic. The resulting market value was 1.82 billion NOK. Despite

enhanced competition within the airline industry from the threat of new entrants

and external regulations, Norwegian ASA’s market value improved. Supported by

an asset-based approach to valuation, the company was wise to continue operations

throughout COVID-19. Our findings show that support from the government and

investors was justified.
Description
Masteroppgave(MSc) in Master of Science in Business, Accounting and Business Control - Handelshøyskolen BI, 2021
Publisher
Handelshøyskolen BI

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit
 

 

Browse

ArchiveCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsDocument TypesJournalsThis CollectionBy Issue DateAuthorsTitlesSubjectsDocument TypesJournals

My Account

Login

Statistics

View Usage Statistics

Contact Us | Send Feedback

Privacy policy
DSpace software copyright © 2002-2019  DuraSpace

Service from  Unit