Veidekke ASA

OB:VEI Stock Report

Market Cap: NOK 18.1b

Veidekke Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: VEI (NOK133.8) is trading below our estimate of fair value (NOK172.78)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VEI. This is calculated by dividing VEI's market cap by their current earnings.
What is VEI's PE Ratio?
PE Ratio13.8x
EarningsNOK 1.31b
Market CapNOK 18.07b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VEI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26x
AFG AF Gruppen
28.9x25.8%NOK 14.7b
NORCO Norconsult
31.7x30.1%NOK 11.6b
BONHR Bonheur
9.5x-14.4%NOK 11.1b
AFK Arendals Fossekompani
34x-50.7%NOK 8.2b
VEI Veidekke
13.8x4.9%NOK 18.1b

Price-To-Earnings vs Peers: VEI is good value based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

How does VEI's PE Ratio compare vs other companies in the European Construction Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
VEI 13.8xIndustry Avg. 12.9xNo. of Companies18PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VEI is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the European Construction industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is VEI'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.

VEI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.8x
Fair PE Ratio16.6x

Price-To-Earnings vs Fair Ratio: VEI is good value based on its Price-To-Earnings Ratio (13.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.6x).

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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