Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.18%, lower than industry average of 8.86%.

Growth Trajectory

Profitability

In the growth phase company makes 13.28% profit on every dollar of sales, higher than industry average of 8.45%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.00% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
128.65B NOK
Equity Value
106.29B NOK
FCF Yield
70.48%
Average ROIC
12.59%
Cost of Capital
6.75%
P/E Ratio
14.61x
Financial MetricMost Recent 12 months (NOK)Previous Year (NOK)
Revenues71.13B NOK70.66B NOK
Operating Income or EBIT9.83B NOK9.90B NOK
Interest Expense939M NOK1.17B NOK
Book Value Of Equity44.86B NOK48.04B NOK
Book Value Of Debt21.29B NOK18.16B NOK
Cash and Marketable Securities2.25B NOK1.45B NOK
Number of Shares Outstanding997.28M--
Minority interests3.33B NOK0 NOK
Current Stock Price114.00 NOK--
Effective Tax Rate21.00%--
Marginal Tax Rate22.00%--

Performance vs Industry

Revenue Growth
-8.19%
0.67%Company
vs
8.86%Industry
Below Industry
Operating Margin
+5.37%
13.81%Company
vs
8.44%Industry
Above Industry
Orkla ASA demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
3.84%
Cost of Capital
8.07%
Return on Capital
8.07%
Reinvestment Rate
47.58%
Terminal value represents 59% of total enterprise value, based on 3.84% perpetual growth and 8.07% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 75.69B NOK Add
Present Value (Cash Flow Over Next 10 Years) 52.96B NOK Add
Value of Operating Assets 128.65B NOK Sub-total
Debt 21.28B NOK Subtract
Minority Interests 3.32B NOK Subtract
Cash 2.25B NOK Add
Value of Equity 106.29B NOK Sub-total
Number of Shares 997.28M shares Divisor
Estimated Value per Share (Fair Value) 106.58 NOK Total
Current Market Price 113.80 NOK Reference

Financial Projections

Total FCF Present Value
52.96B NOK
Avg Revenue Growth
4.09%
Avg Operating Margin
13.16%
Avg ROIC
12.59%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue73.03B NOK76.82B NOK80.80B NOK84.99B NOK89.39B NOK93.79B NOK98.14B NOK102.44B NOK106.65B NOK110.74B NOK115.00B NOK
Growth Rate 2.68% 5.18% 5.18% 5.18% 5.18% 4.91% 4.64% 4.37% 4.10% 3.84% 3.84%
PROFITABILITY
Operating Income10.09B NOK10.34B NOK10.73B NOK11.13B NOK11.55B NOK12.12B NOK12.68B NOK13.24B NOK13.78B NOK14.31B NOK14.86B NOK
Operating Margin 13.81% 13.46% 13.28% 13.10% 12.92% 12.92% 12.92% 12.92% 12.92% 12.92% 12.92%
EBIT (1-tax)7.97B NOK8.16B NOK8.47B NOK8.79B NOK9.13B NOK9.55B NOK9.97B NOK10.38B NOK10.78B NOK11.16B NOK11.59B NOK
CASH FLOW
Reinvestment1.45B NOK1.53B NOK1.61B NOK1.69B NOK1.69B NOK2.56B NOK2.53B NOK2.47B NOK2.41B NOK2.50B NOK5.51B NOK
Free Cash Flow6.51B NOK6.63B NOK6.86B NOK7.10B NOK7.43B NOK6.98B NOK7.44B NOK7.90B NOK8.36B NOK8.66B NOK6.07B NOK
Terminal Value--------------------143.70B NOK
Present Value6.14B NOK5.90B NOK5.76B NOK5.62B NOK5.55B NOK4.90B NOK4.89B NOK4.84B NOK4.76B NOK4.56B NOK—
EFFICIENCY
ROIC 12.47% 12.50% 12.67% 12.84% 13.00% 13.29% 13.39% 13.48% 13.56% 13.63% 8.07%
Cost of Capital 6.00% 6.00% 6.00% 6.00% 6.00% 6.41% 6.82% 7.24% 7.65% 8.07% 8.07%
Sales/Capital 2.59x 2.59x 2.59x 2.59x 2.59x 1.69x 1.69x 1.69x 1.69x 1.69x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (krB)
Reinvestment (krB)