SAS AB Valuation : was it a good decision of the Norwegian government to take part of the SAS AB’s 2009 rights issue?
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- Master Thesis 
This master thesis is a valuation of SAS AB seen through the angle of the Norwegian government’s ownership. It is based on publicly available information up until March 2009. After an introduction of the airline industry and the SAS Group, we present relevant theory used to value the company. Then we analyze the historical economic performance of SAS and the company’s strategic position. Knowledge acquired from the historical and strategic analysis is then used to create financial forecasts. Based on this and the estimated cost of capital the net present value of the future free cash flows is estimated. After adjusting for SAS’ net debt and the number of shares it gives us an estimated share value of SEK 5.67. The validity of this result is evaluated through a multiple and sensitivity analysis. The conclusion is that the government proved good ownership responsibility in participating in the 2009 rights issue.