Nordea: A major discrepancy between price and value
Nordea has achieved a convincing performance turnaround in recent years and its profitability has risen close to its peers. The company is currently performing strongly and although we expect the earnings peak to be close, profitability remains strong in our estimates over the next few years as well. There is no doubt that the operating environment is currently subject to uncertainty, but we believe the valuation of the company (2023e: P/E 7.1x and P/B 1.1x) gives an unreasonably pessimistic picture of the earnings outlook for the coming years.
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Nordea Bank
Nordea conducts banking operations. The bank offers a wide range of financial services, aimed at both private and corporate customers, including traditional asset management, loan financing, and pension savings. In addition, advice and security insurance are also offered, as well as currency management. Nordea conducts most of its business in the Nordic and Baltic countries. The company was founded in 1997 and the head office is located in Helsinki.
Read more on company pageKey Estimate Figures11.06.2023
2022 | 23e | 24e | |
---|---|---|---|
Operating income | 9,721.0 | 11,770.1 | 11,910.2 |
growth-% | 1.05 % | 21.08 % | 1.19 % |
EBIT (adj.) | 5,299.0 | 6,356.3 | 6,198.9 |
EBIT-% (adj.) | 54.51 % | 54.00 % | 52.05 % |
EPS (adj.) | 1.11 | 1.37 | 1.39 |
Dividend | 0.80 | 0.92 | 0.97 |
Dividend % | 7.98 % | 8.41 % | 8.87 % |
P/E (adj.) | 9.05 | 7.97 | 7.89 |
EV/EBITDA | 7.70 | 6.02 | 5.99 |