Extensive research
Nordea: A major discrepancy between price and value
By Matias Arola
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.
Nordea is a banking company. The company offers a range of financial services, aimed at both private and corporate customers, including traditional asset management, loan financing and pension savings. In addition, it also offers advice and security insurance, as well as currency management. Nordea has the largest operations in the Nordic and Baltic countries. The company was founded in 1997 and its headquarters are 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-% | 1.0 % | 21.1 % | 1.2 % |
| EBIT (adj.) | 5,299.0 | 6,356.3 | 6,198.9 |
| EBIT-% (adj.) | 54.5 % | 54.0 % | 52.0 % |
| EPS (adj.) | 1.11 | 1.37 | 1.39 |
| Dividend | 0.80 | 0.92 | 0.97 |
| Dividend % | 8.0 % | 5.6 % | 5.9 % |
| P/E (adj.) | 9.0 | 12.0 | 11.9 |
| EV/EBITDA | 7.7 | 9.1 | 9.0 |
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