| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1.10 | -97 |
| Intrinsic value (DCF) | 14.24 | -59 |
| Graham-Dodd Method | 1.20 | -97 |
| Graham Formula | n/a |
Selvaag Bolig ASA is a leading Norwegian housing development company specializing in the construction and sale of residential properties in key urban areas, including Greater Oslo, Bergen, Stavanger, Trondheim, and Stockholm. As a subsidiary of Selvaag AS, the company leverages decades of expertise in real estate development, offering project management and property rental services to complement its core business. Operating in the competitive Real Estate - General sector, Selvaag Bolig ASA focuses on sustainable and high-quality residential projects, catering to the growing demand for modern housing in Scandinavia. With a market capitalization of approximately NOK 3.23 billion, the company is well-positioned in Norway's dynamic real estate market, benefiting from urbanization trends and a robust housing demand. Selvaag Bolig ASA's strategic locations and strong project execution make it a key player in Nordic residential development.
Selvaag Bolig ASA presents a compelling investment opportunity in the Nordic real estate sector, supported by its strong market presence in high-demand urban areas. The company's revenue of NOK 1.97 billion and net income of NOK 176.9 million in the latest fiscal year reflect steady operational performance. With a diluted EPS of NOK 1.9 and a dividend payout of NOK 1.25 per share, the company offers income potential for investors. However, risks include exposure to cyclical real estate markets and high total debt of NOK 1.64 billion, which could impact financial flexibility. The beta of 0.98 suggests moderate market correlation, making it a relatively stable pick within the sector. Investors should weigh the company's growth prospects against macroeconomic factors affecting the housing market.
Selvaag Bolig ASA competes in the Nordic residential real estate development market, where it differentiates itself through localized expertise and a focus on sustainable housing solutions. The company's competitive advantage lies in its strategic land bank in high-growth urban areas, enabling it to capitalize on urbanization trends. Its subsidiary relationship with Selvaag AS provides access to capital and industry experience, enhancing project execution. However, the company faces stiff competition from larger developers with broader geographic diversification and stronger balance sheets. Selvaag Bolig's niche focus on Scandinavia limits its exposure to international markets, which could be a constraint in a downturn. The company's moderate beta indicates resilience but also suggests limited outperformance potential during market upswings. Its ability to manage debt and maintain profitability in a rising interest rate environment will be critical to sustaining competitiveness.