Scandinavian Working Papers in Economics

UiS Working Papers in Economics and Finance,
University of Stavanger

No 2017/11: "Big Fish": Valuation of the world's largest salmon farming companies ,

Bard Misund () and Rune Nygard
Additional contact information
Bard Misund: UiS, Postal: University of Stavanger, NO-4036 Stavanger, Norway
Rune Nygard: University College of South East Norway

Abstract: The recent five years have seen a nearly tenfold increase the salmon stock price index at the Oslo Stock Exchange. This paper tries to shed some light on the reasons why this substantial stock price appreciation has occurred. The primary aim is to ascertain if the market valuation of salmon farming companies can be explained by rational factors, or there is an element of irrational exuberance behind current all-time high salmon stock prices. In particular, we examine the impact of both fundamental and operational value drivers. The results suggest that a structural shift has occurred, leading to a stronger association between fundamentals and market valuations after 2012, suggesting that at least some of the stock price increase is linked to fundamental factors.

Keywords: salmon company valuation; price-to-book ratio; valuation multiples; salmon price; salmon aquaculture; salmon farming

JEL-codes: G10; G20

28 pages, September 19, 2017

Full text files

uis_wps_2017_11_misund_nygard.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Bernt Arne Odegaard ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:38:13.