Spar Nord Bank A/S

DB:0SR Stock Report

Market Cap: €2.1b

Spar Nord Bank Valuation

Is 0SR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0SR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0SR (€18.46) is trading below our estimate of fair value (€46.12)

Significantly Below Fair Value: 0SR is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0SR?

Key metric: As 0SR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0SR. This is calculated by dividing 0SR's market cap by their current earnings.
What is 0SR's PE Ratio?
PE Ratio7x
EarningsDKK 2.28b
Market CapDKK 15.91b

Price to Earnings Ratio vs Peers

How does 0SR's PE Ratio compare to its peers?

The above table shows the PE ratio for 0SR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.2x
PCZ ProCredit Holding
4.4x10.7%€459.4m
CBK Commerzbank
8x8.8%€17.1b
MING SpareBank 1 SMN
7.8x4.2%NOK 23.8b
EFSC Enterprise Financial Services
12.7x0.1%US$2.3b
0SR Spar Nord Bank
7x-11.4%€15.9b

Price-To-Earnings vs Peers: 0SR is good value based on its Price-To-Earnings Ratio (7x) compared to the peer average (8.2x).

Price to Earnings Ratio vs Industry

How does 0SR's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0SR 7.0xIndustry Avg. 7.2xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0SR is good value based on its Price-To-Earnings Ratio (7x) compared to the European Banks industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is 0SR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0SR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7x
Fair PE Ratio7.4x

Price-To-Earnings vs Fair Ratio: 0SR is good value based on its Price-To-Earnings Ratio (7x) compared to the estimated Fair Price-To-Earnings Ratio (7.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0SR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€18.46
€19.77
+7.1%
5.1%€20.78€18.77n/a2
Jul ’24€14.31
€16.44
+14.9%
14.3%€18.79€14.09€18.062
Jun ’24€13.81
€16.11
+16.6%
12.5%€18.12€14.09€16.882
May ’24€14.62
€16.77
+14.7%
16.0%€19.45€14.09€16.562
Apr ’24€14.58
€16.21
+11.2%
14.5%€19.48€14.11€15.293
Mar ’24€17.14
€16.21
-5.4%
14.5%€19.48€14.11€16.373
Feb ’24€14.38
€15.12
+5.2%
6.7%€16.13€14.12€15.772
Jan ’24€14.16
€15.12
+6.8%
6.7%€16.13€14.12€14.172
Dec ’23€13.82
€15.12
+9.4%
6.7%€16.13€14.12€13.762
Nov ’23€12.40
€14.46
+16.6%
2.3%€14.79€14.12€14.152

Analyst Forecast: Target price is less than 20% higher than the current share price.

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