Romsdal Sparebank Valuation

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

ROMSB (NOK123.96) is trading below our estimate of [[fair value]] (NOK429.32)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: ROMSB (NOK123.96) is trading below our estimate of fair value (NOK429.32)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ROMSB. This is calculated by dividing ROMSB's market cap by their current earnings.
What is ROMSB's PE Ratio?
PE Ratio	14.9x
Earnings	NOK 23.22m
Market Cap	NOK 345.49m

ROMSB 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	0.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ROMSB 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	9.1x
HGSB Haugesund Sparebank	2.2x	28.9%	NOK 339.8m
SUNSB Sunndal Sparebank	11.9x	15.3%	NOK 319.8m
MELG Melhus Sparebank	12.3x	58.2%	NOK 454.2m
SB68 Sparebank 68° Nord	10x	25.5%	NOK 463.8m
ROMSB Romsdal Sparebank	14.9x	16.6%	NOK 345.5m

Price-To-Earnings vs Peers: ROMSB is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (7.7x).

Price to Earnings Ratio vs Industry

How does ROMSB'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: ROMSB is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the Norwegian Banks industry average (8.3x).

Price to Earnings Ratio vs Fair Ratio

What is ROMSB'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.

ROMSB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.9x
Fair PE Ratio	8.9x

Price-To-Earnings vs Fair Ratio: ROMSB is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the estimated Fair Price-To-Earnings Ratio (8.9x).

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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