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Nordea: A major discrepancy between price and value

NDA FIExtensive research2023-06-12 07:31
Inderes
Discuss
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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 page

Key Estimate Figures2023-06-11

202223e24e
Operating income9,721.011,770.111,910.2
growth-%1.0 %21.1 %1.2 %
EBIT (adj.)5,299.06,356.36,198.9
EBIT-% (adj.)54.5 %54.0 %52.0 %
EPS (adj.)1.111.371.39
Dividend0.800.920.97
Dividend %8.0 %6.0 %6.4 %
P/E (adj.)9.011.111.0
EV/EBITDA7.98.68.6

Forum discussions

Yep. You can also think of it this way: a 3% growth in risk-weighted assets requires a 3% growth in own funds to keep the capital adequacy ratio...
10 hours ago
by Kasper Mellas
18
A potential increase in capital adequacy requirements is a so-called one-off item. However, the growth rate of the loan portfolio—assuming that...
11 hours ago
by Jussi Koskinen
2
Under the current capital requirements and my growth forecasts, Nordea can distribute around 80% of its earnings and keep its capital adequacy...
11 hours ago
by Kasper Mellas
10
Here is Jussi Halme’s video about Nordea Are there hidden risks behind Nordea’s excellent earnings that investors haven’t noticed yet? In this...
10/19/2026, 4:28 PM
by Sijoittaja-alokas
16
Aki wrote his Sunday column about Nordea “Rising interest rates improve bank earnings”. “Rising interest rates weigh on stock prices”. Once ...
10/18/2026, 2:23 PM
by Sijoittaja-alokas
24
Yeah, I know that of course, but I didn’t feel like getting deeper into things here, since that would take half a year (in my own economics ...
10/18/2026, 4:40 AM
by Alvaraallonpoika 27051
2
The Financial Supervisory Authority (FIN-FSA) does not make regulations or laws itself; it merely supervises specific aspects of financial institution...
10/18/2026, 4:04 AM
by Taavetti
0