Verbund - Enterprise Value

Energy & Utility | Austria | February 22, 2014
Excel Sheet

Despite increasing its installed capacity by more than 28% since 2006, Verbund's sales have increased by only about 10% while net profit is down more than 22% when compared to the 2012 numbers. As a result, Company's ROE has dropped from more the 20's in 2005-2009 to the single digits in he last two years.

As a result, Verbund's value was at the end of 2012 roughly half the level seen at the end of 2007, i.e. trading at EV to EBITDA of 8.9x and EV to Sales of 3.5 at the end of 2012.