Valuation of Bmw

| Valuation BMW Group | BUSM31 Strategic Financial Management| 2010-10-27| Group 14| | | Tutor: Authors: Måns KjellssonDaniel Hedevåg Jonas Karlsson Mathias Ljungberg Jakob Tuvehjelm Background BMW is one of the ten commodiousst automobile manufacturers in the world, with an annual production of 1.3 million cars (2009). It is furthermore one of the booster cable manufacturers in the premium car segment. BMW Group brand portfolio includes in addition to the BMW brand itself the Mini and Rolls Royce motorcars. The Mini brand is a remain from 1994 when BMW bought Rover and Rolls Royce was acquired in 1998 after a few years of engine cooperation. Besides the production of automobiles BMW is a well respected producer of motorcycles, with a production of 87.000 units in 2009. business organization units sectioning In our opinion BMW is a company which operates within deuce assorted business units; manufacturing and financial services. These units differ from each another(prenominal) and affect the value drivers differently. To labor a fair military rating for BMW we pass therefore chosen to make three different military ratings, the third one being eliminations which represents the intra group transactions in the midst of the two business units.

Regarding motorcycles, we have chosen to include them in the business unit we call manufacturing. For BMW, the gross sales of motorcycles contributed to 2,1% of annual overthrow in 2009 which in itself does not constitute a large proportion of the annual turnover. It is our opinion that there are synergies in demand as well as revenues and costs that justifies including the valuation of the motorcycle part within the sales of cars and that it therefore is no need for a separate valuation of the motorcycles. Diagram 1 Sales of cars and motorcycles, Source: BMW Annual Report 2002-2009 Historical performance We have chosen to compare key figures for BMW, Diagram 2: BMW cars sales in different markets. Source: BMW Annual Report... If you want to get a full essay, order it on our website: Orderessay

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