Value measurement and value creation in the specific context of the emerging business sector "Renewable Energies" : a case study on acquisition from a financial investor's point of view / von Ingrid Schwank
VerfasserSchwank, Ingrid
Umfang164 Bl. : graph. Darst.
HochschulschriftWien, Techn. Univ. u. Univ., Master Thesis, 2010
URNurn:nbn:at:at-ubtuw:1-55102 Persistent Identifier (URN)
 Das Werk ist frei verfügbar
Value measurement and value creation in the specific context of the emerging business sector "Renewable Energies" [1.18 mb]
Zusammenfassung (Englisch)

This work explores historical, current and projected economic indicators and market conditions in the industry of Renewable Energy relevant to value creation. Three companies in the sectors of solar energy manufacturing and wind power project development and generation are evaluated by means of a comparables analysis and a Discounted Cash Flow Analysis. In particular, the Return on Invested Capital (ROIC), the growth and the performance efficiency factors as well as the business situation of the companies and the development of the companies' stocks are assessed. Conclusions on the value-creating effects and projections on the economic performance of the specific companies and the industry as such are formulated. By way of a case study, the resolution on the value-creating potential of the companies and their future economic perspectives form the basis for a financial investor's decision on a possible acquisition in a range from 30%-100% of shares. Consecutively, value-creating holding periods in the range of 5-10 years (or more) and acquisition plans are discussed. In essence, the study on this industry sector shows a pattern of a fast-paced, growth-oriented company development, which was terribly shaken by the economic crisis in the years 2008 to 2010. The risk involved in mere growth-investing becomes evident in this economically challenging time and will have possible longterm effects on the industry. As the market environment enforces a differentiation of "good" and "bad" companies, earning the ROIC becomes pivotal to Renewable Energy companies, while growth remains the leading driver of the industry. This study deals with the central question of how companies in this emerging business sector can meet these challenges for the years to come, focusing on persistent value creation along with attractive returns on equity for their shareholders.