Biuro Maklerskie PKO BP: company valuation at PLN 1 766-1 897 million (PLN 80-85 per share) according to the comparative method and PLN 1 120-1 245 million (PLN 50-56 per share per year) according to DCF

In the financial analysis published on 11 October 2021, Biuro Maklerskie PKO BP raises its previous forecasts – assumes a sales dynamics of 22% YoY. The analysts also significantly raised the valuation of the company in relation to the one published in the spring of 2021.

The analysis reads: “Very strong demand, […], the uncertainty associated with the high volatility of prices combined with the determination to buy, and the shortage of products on the market, results in very good margins in the Group this year. In the longer term, we expect continued revenue growth […], but we expect a normalisation of the margin that will be difficult to sustain in our assessment.”

Based on the DCF model, BM PKO BP analysts established the company’s valuation at 11.10.2022 in the range of PLN 1 120-1 245 million, i.e. PLN 50-56 per share. The valuation on the basis of the comparative analysis amounts to PLN 1 766-1 897 million (average for 2021-2023P), i.e. PLN 80-85 per share.

You can download the analysis from Comments, analysis, recommendations.