An Intrinsic Calculation For Yara International ASA (OB:YAR) Suggests It's 41% Undervalued
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Yara International ASA...
Has the Norwegian Chemicals Industry valuation changed over the past few years?
|Sun, 05 Dec 2021||kr175.9b||kr172.7b||kr9.8b||21.6x|
|Tue, 02 Nov 2021||kr176.3b||kr162.7b||kr9.3b||24.7x|
|Thu, 30 Sep 2021||kr171.2b||kr151.6b||kr12.2b||21.3x|
|Sat, 28 Aug 2021||kr176.9b||kr149.9b||kr12.0b||16.1x|
|Sun, 04 Jul 2021||kr172.8b||kr149.9b||kr12.0b||14.1x|
|Wed, 07 Apr 2021||kr170.2b||kr137.4b||kr8.4b||24.3x|
|Sat, 09 Jan 2021||kr127.8b||kr133.6b||kr6.9b||24.1x|
|Fri, 02 Oct 2020||kr124.9b||kr141.9b||kr6.7b||30.2x|
|Mon, 06 Jul 2020||kr112.6b||kr145.0b||kr4.5b||24.9x|
|Thu, 09 Apr 2020||kr106.2b||kr159.6b||kr5.0b||22.1x|
|Wed, 01 Jan 2020||kr122.9b||kr140.3b||kr6.5b||18.8x|
|Sat, 05 Oct 2019||kr129.3b||kr148.3b||kr6.7b||21.1x|
|Tue, 09 Jul 2019||kr136.7b||kr141.3b||kr7.3b||21.6x|
|Mon, 01 Apr 2019||kr122.5b||kr141.8b||kr4.7b||18.3x|
|Thu, 03 Jan 2019||kr111.3b||kr141.8b||kr5.2b||15.6x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 21.6x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Chemicals industry have grown 24% per year over the last three years, and revenues for these companies have grown 6.8% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the Norwegian Chemicals industry?
|Fertilizers and Agricultural Chemicals||0.15%|
Industry PE: Investors are most optimistic about the Commodity Chemicals industry which is trading above its 3-year average PE ratio of 17.8x. However analysts are expecting annual earnings growth of 2.0%, which is lower than the prior year's growth of 187% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Specialty Chemicals industry, which is trading below its 3-year average of 26.4x.
Forecasted Growth: Analysts are most optimistic on the Fertilizers and Agricultural Chemicals industry, expecting annual earnings growth of 16% over the next 5 years. This is better than it's past earnings growth rate of 1.6% per year. Meanwhile, the Specialty Chemicals industry is expected to see its earnings growth to stay flat over the next few years.
Which companies have driven the market over the last 7 days?
Bergen Carbon Solutions
Aqua Bio Technology
Aker Clean Hydrogen