We have previously explained how SCA’s forest asset valuation model is entirely inappropriate and its unexplained premium in m3fo to competitors. This results in a valuation that is completely dislocated from future cash flows, the only real purpose of the 2m hectares of productive forest land on SCA’s balance sheet.
SCA appears to account for over 40% of transactions by area transacted according to our calculations.
This is yet another problem with the market valuation methodology: thin trading volumes dominated by players whose uses for the asset (forestry) is at odds with most buyers (leisure).