Norsk Hydro Valuation

Q: What is the Fair Price of 0Q11 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

0Q11 (NOK62.13) is trading below our estimate of [[fair value]] (NOK166)

Is 0Q11 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 0Q11 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0Q11 (NOK62.13) is trading below our estimate of fair value (NOK166)

Significantly Below Fair Value: 0Q11 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0Q11?

Key metric: As 0Q11 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0Q11. This is calculated by dividing 0Q11's market cap by their current earnings.
What is 0Q11's PE Ratio?
PE Ratio	92.4x
Earnings	NOK 1.34b
Market Cap	NOK 123.85b

0Q11 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	3x
PEG Ratio	1.9x

Price to Earnings Ratio vs Peers

How does 0Q11's PE Ratio compare to its peers?

The above table shows the PE ratio for 0Q11 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	21x
FRES Fresnillo	23.9x	33.8%	UK£4.7b
ANTO Antofagasta	26.2x	18.3%	UK£15.9b
NLMK Novolipetsk Steel	0.8x	n/a	US$4.1b
SMDS DS Smith	33.1x	20.9%	UK£7.4b
0Q11 Norsk Hydro	92.4x	47.6%	NOK 123.9b

Price-To-Earnings vs Peers: 0Q11 is expensive based on its Price-To-Earnings Ratio (92.4x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does 0Q11's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

5 Companies	Price / Earnings	Estimated Growth	Market Cap
NLMK Novolipetsk Steel	0.8x	n/a	US$4.08b
EVR EVRAZ	0.4x	n/a	US$1.42b
MTL Metals Exploration	0.8x	-60.3%	US$115.18m
ARCM Arc Minerals	1.8x	n/a	US$20.03m

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 0Q11 is expensive based on its Price-To-Earnings Ratio (92.4x) compared to the UK Metals and Mining industry average (9.4x).

Price to Earnings Ratio vs Fair Ratio

What is 0Q11'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.

0Q11 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	92.4x
Fair PE Ratio	36.4x

Price-To-Earnings vs Fair Ratio: 0Q11 is expensive based on its Price-To-Earnings Ratio (92.4x) compared to the estimated Fair Price-To-Earnings Ratio (36.4x).

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 0Q11 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	NOK 62.13	NOK 79.80 +28.4%	13.0%	NOK 94.00	NOK 55.00	n/a	15
Dec ’25	NOK 68.14	NOK 79.00 +15.9%	13.3%	NOK 94.00	NOK 55.00	n/a	15
Nov ’25	NOK 68.87	NOK 78.60 +14.1%	12.8%	NOK 92.00	NOK 55.00	n/a	15
Oct ’25	NOK 68.63	NOK 77.21 +12.5%	15.6%	NOK 92.00	NOK 50.00	n/a	14
Sep ’25	NOK 59.72	NOK 77.21 +29.3%	15.3%	NOK 92.00	NOK 50.00	n/a	14
Aug ’25	NOK 59.21	NOK 78.36 +32.3%	14.3%	NOK 92.00	NOK 50.00	n/a	14
Jul ’25	NOK 66.86	NOK 78.57 +17.5%	13.5%	NOK 93.00	NOK 50.00	n/a	14
Jun ’25	NOK 70.92	NOK 76.08 +7.3%	12.7%	NOK 85.00	NOK 50.00	n/a	13
May ’25	NOK 69.14	NOK 76.08 +10.0%	13.7%	NOK 90.00	NOK 50.00	n/a	13
Apr ’25	NOK 59.40	NOK 73.62 +23.9%	13.8%	NOK 87.00	NOK 50.00	n/a	13
Mar ’25	NOK 54.80	NOK 73.62 +34.3%	14.6%	NOK 87.00	NOK 50.00	n/a	13
Feb ’25	NOK 61.73	NOK 75.69 +22.6%	14.3%	NOK 89.00	NOK 55.00	n/a	13
Jan ’25	NOK 68.36	NOK 74.15 +8.5%	15.8%	NOK 92.00	NOK 55.00	n/a	13
Dec ’24	NOK 64.34	NOK 74.00 +15.0%	18.3%	NOK 95.00	NOK 55.00	NOK 68.14	13
Nov ’24	NOK 63.44	NOK 75.08 +18.3%	18.8%	NOK 100.00	NOK 55.00	NOK 68.87	13
Oct ’24	NOK 67.20	NOK 77.15 +14.8%	19.1%	NOK 100.00	NOK 55.00	NOK 68.63	13
Sep ’24	NOK 61.38	NOK 78.43 +27.8%	18.6%	NOK 100.00	NOK 55.00	NOK 59.72	14
Aug ’24	NOK 65.68	NOK 79.86 +21.6%	17.5%	NOK 100.00	NOK 55.00	NOK 59.21	14
Jul ’24	NOK 63.89	NOK 83.57 +30.8%	19.5%	NOK 115.00	NOK 55.00	NOK 66.86	14
Jun ’24	NOK 66.94	NOK 85.00 +27.0%	19.0%	NOK 115.00	NOK 55.00	NOK 70.92	14
May ’24	NOK 76.01	NOK 84.71 +11.5%	19.4%	NOK 115.00	NOK 55.00	NOK 69.14	14
Apr ’24	NOK 78.18	NOK 82.14 +5.1%	17.0%	NOK 100.00	NOK 55.00	NOK 59.40	14
Mar ’24	NOK 79.20	NOK 81.50 +2.9%	17.5%	NOK 100.00	NOK 55.00	NOK 54.80	12
Feb ’24	NOK 81.25	NOK 77.15 -5.0%	17.6%	NOK 94.00	NOK 55.00	NOK 61.73	13
Jan ’24	NOK 72.96	NOK 73.29 +0.4%	18.8%	NOK 93.00	NOK 55.00	NOK 68.36	14
Dec ’23	NOK 73.16	NOK 72.29 -1.2%	18.7%	NOK 90.00	NOK 55.00	NOK 64.34	14

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/22 23:10
End of Day Share Price	2024/12/20 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Norsk Hydro ASA is covered by 42 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Bengt Jonassen	ABG Sundal Collier
Varun Sikka	AlphaValue
Thomas Lorck	Arctic Securities ASA