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Føroya Banki, (FOBANK) Fair Value & Analysis

Financial Services · DK · Market cap 2.7B DKK

FB Føroya Banki, FOBANK · CO
Pricekr 272.00
Fair Valuekr 553.00
Upside+103.3%
Quality67/100
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Mixed Growth
Highly profitable · 46.1% net margin
generates free cash flow
7.69% dividend yield
Ranks above peers (9/12)
Wide moat 72/100
Evidence: High Range kr 414.75 – kr 691.25 Share as image

Fair value as of: Jul 17, 2026

From 6 valuation models · updated 24 days ago

Fair value updated Jul 17, 2026, revised from kr 391.49 to kr 553.00 (+41.3%) since Jun 26, 2026. Share price +2.4% over the past month.

A solid business, screening 103% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (kr 414.75). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

kr 302.17 kr 52.20 Fair Value kr 553.00 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range kr 52.20 – kr 302.17 · fair‑value band kr 414.75 – kr 691.25 · the kr 272.00 price screens below the kr 553.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Føroya Banki, (FOBANK) currently trades at kr 272.00, while our model-based Fair Value estimate is kr 553.00, implying the stock looks roughly 103.3% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Føroya Banki, generated revenue of 614M DKK at a net margin of 46.1%. Revenue declined 1.9% year over year. It earns a return on equity of 15.5%. The balance sheet holds a net cash position of 2.4B DKK. Fundamentals as of Jul 17, 2026

Our scenario range runs from kr 414.75 (bear case) to kr 691.25 (bull case); at kr 272.00, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 12% below its 52-week high and 68% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 103%, FOBANK screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income kr 204.20 kr 244.51 kr 424.81 76
Gordon GGM kr 321.07 kr 349.91 kr 393.53 70
P/E Multiple kr 293.62 kr 391.49 kr 489.36 63
All 6 models by family
Dividend Discount
Gordon GGM kr 321.07 kr 349.91 kr 393.53 70
DDM Multi-Stage kr 321.07 kr 402.67 kr 510.10 61
Multiples
P/E Multiple kr 293.62 kr 391.49 kr 489.36 63
P/B Multiple kr 221.02 kr 294.70 kr 368.37 55
Asset-Based
NCAV (Graham) kr 105.25 kr 141.03 kr 210.50 50
Economic Profit
Residual Income kr 204.20 kr 244.51 kr 424.81 76

Widest divergence: Dividend Discount (kr 349.91) versus Asset-Based (kr 141.03). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 614M DKK
Revenue growth (YoY) -1.9%
Net margin 46.1%
Return on equity 15.5%
Free cash flow 927M DKK FY2025
P/E ratio 9.4
More key figures
Operating margin 50.3%
EPS (TTM) kr 29.59
Dividend yield 7.7%
EPS growth (YoY) -8.2%
Net cash 2.4B DKK FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 71 · Market factors (momentum, volatility) 74

Profitability 39
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Føroya Banki, together with its subsidiaries, provides personal and corporate banking services in the Faroe Islands and Greenland. It operates through Banking and Non-Life Insurance segments.

Full company description

Føroya Banki, together with its subsidiaries, provides personal and corporate banking services in the Faroe Islands and Greenland. It operates through Banking and Non-Life Insurance segments. The company provides non-life insurance products, such as property and casualty insurance; life, disability, and critical illness insurance; and real estate agency services. It also offers car loans, mortgage financing, debit and credit cards, pensions, as well as online banking services. The company was formerly known as P/F BankNordik and changed its name to Føroya Banki in March 2024. Føroya Banki was founded in 1906 and is headquartered in Tórshavn, Denmark.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Føroya Banki, reported revenue of kr 609M in FY2025 versus kr 508M in FY2021, a compound +4.6%/yr. Reported net income was kr 288M in FY2025, compounding +10.5%/yr from FY2021.

Growth Quality 74/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
609M DKK
Latest YoY
−4.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.4%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.9%
Revenue +4.6%/yr
FY21 kr 508M
FY22 kr 504M
FY23 kr 887M
FY24 kr 635M
FY25 kr 609M
Net income +10.5%/yr
FY21 kr 193M
FY22 kr 164M
FY23 kr 308M
FY24 kr 310M
FY25 kr 288M

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Cite: Fair Value Calculator (2026). "Føroya Banki, Fair Value". https://www.fairvalue-calculator.com/stock/FOBANK

Peer Group

Banks - Regional · 1082 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 74 · Top 25%
Fair Value upside +103% · Top 25%
Return on equity (TTM) 15% · Top 25%
Return on assets 2% · Top 25%
Net margin (TTM) 46% · Top 25%
Operating margin (TTM) 50% · Top 25%
Revenue growth -2% · Bottom 25%
Dividend yield (TTM) 7.7% · Top 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 9.4× · Cheaper than median
P/B 1.32× · Pricier than median
P/S (TTM) 4.32× · Pricier than 75% of peers
P/FCF 0.4× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 39
FUTURE 0 · sector 44
PAST 62 · sector 41
HEALTH 0 · sector 85
DIVIDEND 100 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Føroya Banki, (FOBANK) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of kr 553.00 versus a price of kr 272.00, about +103% (undervalued).
What is the fair value of FOBANK?
Our model-based fair value for Føroya Banki, is kr 553.00 (as of Jul 17, 2026), built from audited fundamentals. The current price is kr 272.00.
What is the quality score of FOBANK?
Føroya Banki, has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Føroya Banki, (FOBANK)?
Føroya Banki, reported trailing-twelve-month revenue of about 614M DKK (latest available figure, as of Jul 17, 2026).
What is the net profit margin of FOBANK?
The net profit margin of Føroya Banki, is about 46.1%, meaning it keeps roughly 46.1% of revenue as net income. Based on the latest reported figures.
Does Føroya Banki, pay a dividend?
Føroya Banki, currently shows a dividend yield of about 8.57% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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