Nordea Bank Abp provides various banking products and services for personal customers, small and medium business, and corporates and financial institutions in Europe.
The last earnings update was 82 days ago.
Discounted Cash Flow Calculation for BST:NBZF using Excess Returns Model Model
The calculations below outline how an intrinsic value for Nordea Bank Abp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
Nordea Bank Abp
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Nordea Bank Abp's
is considered below, and whether this is a fair price.
Price based on past earnings
Nordea Bank Abp's earnings available for a low price, and how does
this compare to other companies in the same industry?
Nordea Bank Abp's earnings are expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Nordea Bank Abp's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Nordea Bank Abp's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Nordea Bank Abp
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Casper von Koskull has been the Group Chief Executive Officer of Nordea Bank AB (publ) since November 1, 2015 and has been its President since November 5, 2015. Mr. von Koskull has been a Member of Group Executive Management at Nordea Bank AB (publ) since 2010. Mr. von Koskull served as Vice Chairman at Nordea Bank Finland Plc since August 13, 2012 until January 26, 2016. He served as Head of Wholesale Banking at Nordea Pankki Suomi Oyj. He served as the Head of Wholesale Banking of Nordea Bank AB from 2010 to 2015 and served as its Executive Vice President. He served as Vice President Nordic Coverage Citicorp Investment Bank, Ltd, since 1987 until 1990. He served as Head of Corporate Merchant Banking & Capital Markets at Nordea Bank AB since December 2010 and also served as its Head of Markets Investment Banking. He served as Head of Derivatives Marketing and Structuring for German Corporate Clients, Citibank, Frankfurt since 1992 until 1994. He has responsibility for Corporate Merchant Banking and Capital Markets. He served as Head of Corporate Merchant Banking & Capital Markets of Nordea Nordea Pankki Suomi Oyj. For the last 12 years, he has been with Goldman Sachs, most recently as Managing Director and Partner of Goldman Sachs International and head of the Nordic Investment Banking since 1998 until 2010. He was Vice President Leverage Finance, Citibank, New York since 1990 until 1992. He has been a Director of Nordea Pankki Suomi Oyj since September 1, 2010. He served as a Director of Nordea Bank Finland Plc. since September 1, 2010 until January 26, 2016.He served as Managing Director of Nordic Investment Banking, UBS London since 1994 until 1998. Mr. Von Koskull served as a Director of ISS A/S (aka ISS World Services A/S) from December 2009 to August 25, 2010 and ISS Holding A/S from December 12, 2009 to August 25, 2010. He served as a Director of ISS Equity A/S until August 25, 2010. He was Account Manager of Citibank, Helsinki since 1984 until 1987.
Casper's compensation has been consistent with company performance over the past year.
Casper's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
Nordea Bank Abp
management team in years:
The tenure for the Nordea Bank Abp management team is about average.
Casper von Koskull
President & Group CEO
Head of Group Corporate Centre
Chief Legal Officer & Member of Management Board
Group CIO and Head of Group Technology
Head of Investor Relations
Chief Compliance Officer & Head of Group Compliance
Head of Group Communications
Head of Group Marketing & Communications
Chief People Officer & Head of Group Human Resources
Board of Directors Tenure
Average tenure and age of the
Nordea Bank Abp
board of directors in years:
The tenure for the Nordea Bank Abp board of directors is about average.
Nordea Bank Abp provides various banking products and services for personal customers, small and medium business, and corporates and financial institutions in Europe. It operates through Personal Banking, Commercial & Business Banking, Wholesale Banking, and Wealth Management segments. It offers investment solutions, including fixed income, equity, and multi asset; cash management solutions; a range of asset finance, sales finance, and receivable finance solutions, as well as wholesale financing and management, and fleet management services. The company also provides securities services, such as custody services, including clearing, settlement, and safekeeping of domestic and foreign securities; administrates and processes corporate action events, paying agent, registrar services, equity incentive plans, and others; and sub-custody services, including account opening, settlements, income collection, taxation, corporate actions, proxy voting, reporting, and market advocacy. In addition, it offers life and pensions products; trade finance services; leasing and hire purchase products; and online and mobile services. It has approximately 450 branches. The company was founded in 1820 and is headquartered in Helsinki, Finland.
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