SpareBank 1 BV (OB:SBVG): What Are The Future Prospects?

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SpareBank 1 BV’s (OB:SBVG) most recent earnings update in December 2018 indicated that the business benefited from a robust tailwind, leading to a double-digit earnings growth of 16%. Below, I’ve presented key growth figures on how market analysts view SpareBank 1 BV’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

See our latest analysis for SpareBank 1 BV

Analysts’ expectations for the upcoming year seems positive, with earnings rising by a robust 42%. This growth seems to continue into the following year with rates arriving at double digit 46% compared to today’s earnings, and finally hitting øre531m by 2022.

OB:SBVG Past and Future Earnings, June 4th 2019
OB:SBVG Past and Future Earnings, June 4th 2019

Although it’s useful to understand the growth rate each year relative to today’s figure, it may be more insightful to determine the rate at which the business is rising or falling every year, on average. The pro of this method is that we can get a bigger picture of the direction of SpareBank 1 BV’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 10%. This means, we can expect SpareBank 1 BV will grow its earnings by 10% every year for the next couple of years.

Next Steps:

For SpareBank 1 BV, there are three important aspects you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is SBVG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SBVG is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of SBVG? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.