Victoria Eiendom (OTCNO:VIEI) Valuation After Strong Q3 and Nine‑Month Earnings Rebound

Victoria Eiendom (OTCNO:VIEI) just posted a sharp jump in third quarter and nine month earnings, with sales and net income both climbing meaningfully versus last year, giving investors fresh data to reassess the share price.

See our latest analysis for Victoria Eiendom.

The upbeat earnings backdrop seems to be feeding into sentiment, with a 1 month share price return of about 11 percent and a year to date share price gain above 28 percent, while multi year total shareholder returns suggest momentum is still building rather than fading.

If Victoria Eiendom’s renewed momentum has you thinking more broadly about the market, this could be a good moment to hunt for fast growing stocks with high insider ownership.

With earnings surging and the share price already posting impressive multi year gains, investors now face the key question: is Victoria Eiendom still trading below its true value, or is the market already pricing in further growth?

Price-to-Earnings of 16x: Is it justified?

Victoria Eiendom trades at a price to earnings ratio of 16 times, close to peers but slightly above the broader European real estate average, which tempers the strong share price gains.

The price to earnings multiple compares the company’s market value to its current earnings. It is a widely used yardstick for real estate businesses with established profit streams.

For Victoria Eiendom, a 16 times multiple suggests investors are willing to pay a modest premium for today’s earnings, despite historically weak five year profit trends and only recently rebounding margins.

Compared with the Norwegian real estate industry at 16.7 times, the stock looks marginally cheaper. Versus the wider European real estate average of 14.4 times it screens as more expensive, which implies the market expects stronger or more dependable earnings than the typical European peer.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 16x (ABOUT RIGHT)

However, investors should still weigh risks such as property market weakness or slower rental demand, which could pressure occupancy, valuations, and earnings momentum.

Find out about the key risks to this Victoria Eiendom narrative.

Another View: DCF Flags Clear Overvaluation

While a 16 times earnings multiple feels roughly in line with peers, our DCF model paints a starker picture. It suggests fair value near NOK210.55 versus the current NOK910 price, meaning Victoria Eiendom screens as materially overvalued on cash flow grounds. Could recent momentum be outrunning fundamentals?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Victoria Eiendom for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 920 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Victoria Eiendom Narrative

If you remain unconvinced by these conclusions, or would prefer to examine the numbers yourself, you can quickly build a personalised view in minutes: Do it your way.

A great starting point for your Victoria Eiendom research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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