Lerøy Seafood Group Valuation

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

LSG (NOK52.25) is trading below our estimate of [[fair value]] (NOK294.99)

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

Below Fair Value: LSG (NOK52.25) is trading below our estimate of fair value (NOK294.99)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LSG. This is calculated by dividing LSG's market cap by their current earnings.
What is LSG's PE Ratio?
PE Ratio	16.1x
Earnings	NOK 1.93b
Market Cap	NOK 31.11b

LSG 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	1.3x
Enterprise Value/EBITDA	11.1x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LSG 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	23.5x
BAKKA P/F Bakkafrost	43.5x	63.1%	NOK 39.0b
AUSS Austevoll Seafood	9.2x	9.4%	NOK 20.4b
ORK Orkla	17.7x	8.1%	NOK 100.5b
SALM SalMar	23.4x	32.5%	NOK 76.9b
LSG Lerøy Seafood Group	16.1x	30.6%	NOK 31.1b

Price-To-Earnings vs Peers: LSG is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (23.5x).

Price to Earnings Ratio vs Industry

How does LSG's PE Ratio compare vs other companies in the European Food Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LSG is expensive based on its Price-To-Earnings Ratio (16.1x) compared to the European Food industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is LSG'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.

LSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.1x
Fair PE Ratio	18.7x

Price-To-Earnings vs Fair Ratio: LSG is good value based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).

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 LSG 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 52.25	NOK 58.33 +11.6%	5.2%	NOK 63.00	NOK 53.00	n/a	6
Dec ’25	NOK 51.50	NOK 58.33 +13.3%	5.2%	NOK 63.00	NOK 53.00	n/a	6
Nov ’25	NOK 50.50	NOK 59.14 +17.1%	7.9%	NOK 67.00	NOK 50.00	n/a	7
Oct ’25	NOK 50.00	NOK 57.71 +15.4%	7.0%	NOK 64.00	NOK 50.00	n/a	7
Sep ’25	NOK 50.25	NOK 57.43 +14.3%	6.8%	NOK 64.00	NOK 50.00	n/a	7
Aug ’25	NOK 46.80	NOK 56.50 +20.7%	1.7%	NOK 58.00	NOK 55.00	n/a	6
Jul ’25	NOK 42.74	NOK 56.50 +32.2%	1.7%	NOK 58.00	NOK 55.00	n/a	6
Jun ’25	NOK 46.02	NOK 56.50 +22.8%	1.7%	NOK 58.00	NOK 55.00	n/a	6
May ’25	NOK 49.20	NOK 54.67 +11.1%	4.0%	NOK 58.00	NOK 52.00	n/a	6
Apr ’25	NOK 47.76	NOK 54.33 +13.8%	4.7%	NOK 58.00	NOK 51.00	n/a	6
Mar ’25	NOK 47.28	NOK 52.50 +11.0%	4.1%	NOK 55.00	NOK 49.00	n/a	6
Feb ’25	NOK 42.10	NOK 51.33 +21.9%	5.8%	NOK 55.00	NOK 47.00	n/a	6
Jan ’25	NOK 41.84	NOK 51.67 +23.5%	7.5%	NOK 58.00	NOK 47.00	n/a	6
Dec ’24	NOK 41.98	NOK 51.67 +23.1%	7.5%	NOK 58.00	NOK 47.00	NOK 51.50	6
Nov ’24	NOK 44.22	NOK 58.82 +33.0%	11.8%	NOK 72.00	NOK 50.00	NOK 50.50	6
Oct ’24	NOK 44.88	NOK 58.98 +31.4%	11.5%	NOK 72.00	NOK 50.00	NOK 50.00	6
Sep ’24	NOK 43.84	NOK 58.98 +34.5%	11.5%	NOK 72.00	NOK 50.00	NOK 50.25	6
Aug ’24	NOK 42.58	NOK 63.41 +48.9%	11.6%	NOK 72.00	NOK 50.00	NOK 46.80	7
Jul ’24	NOK 40.72	NOK 64.82 +59.2%	10.9%	NOK 72.00	NOK 50.00	NOK 42.74	6
Jun ’24	NOK 49.38	NOK 64.82 +31.3%	10.9%	NOK 72.00	NOK 50.00	NOK 46.02	6
May ’24	NOK 56.05	NOK 63.94 +14.1%	9.8%	NOK 72.00	NOK 50.00	NOK 49.20	7
Apr ’24	NOK 54.30	NOK 62.09 +14.3%	10.1%	NOK 72.00	NOK 50.00	NOK 47.76	7
Mar ’24	NOK 51.05	NOK 61.66 +20.8%	9.7%	NOK 72.00	NOK 50.00	NOK 47.28	7
Feb ’24	NOK 59.40	NOK 63.14 +6.3%	13.1%	NOK 75.00	NOK 52.00	NOK 42.10	7
Jan ’24	NOK 55.15	NOK 58.79 +6.6%	13.7%	NOK 72.00	NOK 44.00	NOK 41.84	7
Dec ’23	NOK 48.70	NOK 58.92 +21.0%	15.0%	NOK 72.00	NOK 44.00	NOK 41.98	6

Analyst Forecast: Target price is less than 20% higher than the current share price.