Føroya Banki (FOBANK) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of Føroya Banki DKK 343, price DKK 278, upside +23.5%, quality 67 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range kr 52.20 – kr 302.17 · fair‑value band kr 257.08 – kr 417.55 · the kr 277.50 price screens below the kr 342.77 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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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.
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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.
Stock analysis
Føroya Banki (FOBANK) currently trades at kr 277.50, while our model-based Fair Value estimate is kr 342.77, implying the stock looks roughly 19.0% undervalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of kr 306.17 per share, and 4 of the 6 models we run sit above the kr 277.50 price.
Bear case: the Asset-Based group reads lowest at kr 141.03, and 2 of the 6 models stay below the price. Evidence for this calculation is medium.
Scenario range: kr 257.08 (bear) to kr 417.55 (bull), the price of kr 277.50 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 67/100 (solid quality), in the Financial Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Føroya Banki reported revenue of 609M DKK in FY2025 versus 508M DKK in FY2021, a compound +4.6%/yr. Reported net income was 288M DKK in FY2025, compounding +10.5%/yr from FY2021.
Key figures
Market cap 2.7B DKK (≈ $405M) · P/E ratio 9.4 · P/S ratio 4.44 · EPS (TTM) kr 29.59 · Dividend yield 7.6% · Net margin 47.3% · Return on equity 15.5% · Return on assets (EBIT) 1.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 8% below its 52-week high and 56% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −36% fair-value upside, at 24%, FOBANK screens cheaper than that median.
Fair Value models
Bear kr 257.08Fair Value kr 342.77Bull kr 417.55
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (kr 6.28 per share) are deliberately not added.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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.74/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−4.1%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+6.5%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+5.4%
Start year 2020 (pandemic). Over 10 years: −2.1% a year
Revenue growth 21 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−3.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+15.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.3%
Dividend (yield on the price)7.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.8% vs 3%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.41% → 58%
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 4.7%/yr over ~10Y (margin trend unclear) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Little optimism in the price
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
less than -40 %
Yearly growth needed for the next five years to justify today's price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Banks - Regional · 1076 stocks
Beats the industry median on 9/12 measures
Overall it ranks above its industry peers.
Valuation
Quality Score74 · Top 25%
Fair Value upside+24% · Top 25%
Profitability
Return on equity (TTM)15% · Top 25%
Return on assets2% · Top 25%
Net margin (TTM)46% · Top 25%
Operating margin (TTM)50% · Top 25%
Growth and dividend
Revenue growth−2% · Bottom 25%
Dividend yield (TTM)7.6% · Top 25%
Valuation Multiplesvs Banks - Regional median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Føroya Banki Fair Value". https://www.fairvalue-calculator.com/stock/FOBANK
Frequently asked questions
Is Føroya Banki (FOBANK) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of kr 342.77 versus a price of kr 277.50, about +24% upside (undervalued).
What is the fair value of FOBANK?
Our model-based fair value for Føroya Banki is kr 342.77 (as of Sep 24, 2026), built from audited fundamentals. The current price: kr 277.50.
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 price target for Føroya Banki (FOBANK)?
Our model-based price target is the fair value of kr 342.77 (as of Sep 24, 2026) from 6 valuation models. Cautious scenario kr 257.08, optimistic scenario kr 417.55. It is a calculation from audited fundamentals, not an analyst target.
What is the Føroya Banki stock forecast for 2026?
Our models put fair value at kr 342.77, about +24% upside versus a price of kr 277.50 (undervalued). Cautious scenario kr 257.08, optimistic scenario kr 417.55. The calculation is refreshed regularly with new filings.
What is the revenue of Føroya Banki (FOBANK)?
Føroya Banki reported trailing-twelve-month revenue of about 614M DKK (latest available figure, as of Sep 24, 2026).
Does Føroya Banki pay a dividend?
Føroya Banki currently shows a dividend yield of about 7.58% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Føroya Banki (FOBANK)?
For today's price to be fair in a discounted-cash-flow model, Føroya Banki would have to grow free cash flow by less than minus 40 % per year for five years (discount rate 9.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.4 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of FOBANK use?
Our models discount Føroya Banki at 9.6 %: a base by market capitalisation (small), damped by beta 0.36, country premium for Denmark. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Føroya Banki that is less than minus 40 % per year a year over ten years, using the same discount rate (9.6 %) and the same formula as our fair value.
How much growth has Føroya Banki (FOBANK) delivered so far?
Over the past 5 years revenue at Føroya Banki grew +5.4 % a year. The price currently implies less than minus 40 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Føroya Banki (FOBANK) growing?
The median revenue growth in the sector is +7.0 % a year. That is the yardstick for the growth priced into Føroya Banki (less than minus 40 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Føroya Banki (FOBANK)?
The free-cash-flow yield on the price is 34.88 %: that much free cash flow Føroya Banki produces per unit of market value. When it exceeds the discount rate of our models (9.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Føroya Banki (FOBANK)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Føroya Banki it is kr 342.77 per share (as of Sep 24, 2026), against a price of kr 277.50. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Føroya Banki stock overvalued or undervalued in 2026?
As of Sep 24, 2026, FOBANK trades below its calculated fair value: price kr 277.50, fair value kr 342.77, a gap of about +24% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of FOBANK?
No. The price is what the market pays today (kr 277.50); the fair value is what the company's own numbers justify (kr 342.77). For Føroya Banki the two are kr 65.27 per share apart. That gap is exactly why we show both numbers side by side.
How much is Føroya Banki worth?
The market values Føroya Banki at about 2.7B DKK (market capitalisation, as of Sep 24, 2026). Per share that is kr 277.50; our models calculate a fair value of kr 342.77 per share.
What do the bullish and bearish scenarios say about FOBANK?
Our models span a range for Føroya Banki: cautious scenario kr 257.08, base kr 342.77, optimistic kr 417.55 per share (as of Sep 24, 2026, price kr 277.50). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of FOBANK?
Føroya Banki trades at a price-to-earnings ratio of 9.4 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of kr 342.77 is built from several models across several years. Other multiples: P/B 1.3, P/S 4.3.
How solid is the balance sheet of Føroya Banki (FOBANK)?
Balance-sheet figures for Føroya Banki (as of Sep 24, 2026): return on equity 15.5%. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is FOBANK from its 52-week high?
Føroya Banki trades at kr 277.50, about 8% below its 52-week high of kr 302.17 and 56% above the low of kr 178.18 (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of kr 342.77 is for.
Which stocks are comparable to Føroya Banki?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, UniCredit S.p.A, Intesa Sanpaolo S.p.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Føroya Banki stock attractive at the current price?
The data as of Sep 24, 2026: price kr 277.50, calculated fair value kr 342.77 (+24%), Quality Score 67/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of FOBANK calculated?
We run Føroya Banki through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of kr 342.77, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0 % above its aggregate fair value. Føroya Banki currently trades 24 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Føroya Banki (FOBANK)?
The closing price on Sep 24, 2026 was kr 277.50. Our model-based fair value is kr 342.77, about +24% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Føroya Banki right now?
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.
Key figures of Føroya Banki
How large is the market capitalisation of Føroya Banki (FOBANK)?
The market capitalisation of Føroya Banki is 2.7B DKK (≈ $405M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Føroya Banki (FOBANK)?
The price-to-sales ratio of Føroya Banki is 4.44 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Føroya Banki (FOBANK)?
Earnings per share at Føroya Banki are kr 29.59 (price ÷ EPS = P/E 9.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Føroya Banki (FOBANK)?
The dividend yield of Føroya Banki is 7.6% (payout 71.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Føroya Banki (FOBANK)?
The net margin of Føroya Banki is 47.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Føroya Banki (FOBANK)?
The return on equity (ROE) of Føroya Banki is 15.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Føroya Banki (FOBANK)?
On an EBIT basis the return on assets of Føroya Banki is 1.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Føroya Banki (FOBANK)?
The operating margin of Føroya Banki is 50.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Føroya Banki (FOBANK)?
Revenue at Føroya Banki is growing −1.9% versus a year earlier (3y avg +6.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Føroya Banki (FOBANK)?
Earnings per share at Føroya Banki are growing −8.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Føroya Banki (FOBANK) hold?
Føroya Banki holds more cash than debt, 2.4B DKK net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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