Melhus Sparebank Valuation

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

MELG (NOK163.6) is trading below our estimate of [[fair value]] (NOK582.49)

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

Below Fair Value: MELG (NOK163.6) is trading below our estimate of fair value (NOK582.49)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MELG. This is calculated by dividing MELG's market cap by their current earnings.
What is MELG's PE Ratio?
PE Ratio	12.3x
Earnings	NOK 36.82m
Market Cap	NOK 454.19m

MELG 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.2x

Price to Earnings Ratio vs Peers

How does MELG's PE Ratio compare to its peers?

The above table shows the PE ratio for MELG 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	8.7x
SB68 Sparebank 68° Nord	10x	25.5%	NOK 463.8m
SKUE Skue Sparebank	7.5x	21.1%	NOK 591.8m
HGSB Haugesund Sparebank	2.2x	28.9%	NOK 339.8m
ROMSB Romsdal Sparebank	14.9x	16.6%	NOK 345.5m
MELG Melhus Sparebank	12.3x	58.2%	NOK 454.2m

Price-To-Earnings vs Peers: MELG is expensive based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (7.4x).

Price to Earnings Ratio vs Industry

How does MELG's PE Ratio compare vs other companies in the NO Banks Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap
FFSB Flekkefjord Sparebank	1.4x	4.1%	US$15.03m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MELG is expensive based on its Price-To-Earnings Ratio (12.3x) compared to the Norwegian Banks industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is MELG'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.

MELG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.3x
Fair PE Ratio	17.2x

Price-To-Earnings vs Fair Ratio: MELG is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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