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Melhus Sparebank, a savings bank, (MELG) Fair Value & Analysis

Financial Services · NO · Market cap 507M NOK

MS Melhus Sparebank, a savings bank, MELG · OL
Pricekr 185.02
Fair Valuekr 365.96
Upside+97.8%
Quality59/100
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Weak Growth
Highly profitable · 41.5% net margin
Moderate debt · generates free cash flow
7.38% dividend yield
Ranks above peers (9/14)
Wide moat 66/100
Evidence: High Range kr 274.47 – kr 457.45 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 370.00 to kr 365.96 (−1.1%) since Jun 26, 2026. Share price −1.1% over the past month.

A solid business, screening 98% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (kr 274.47). The market is more pessimistic than our downside scenario.
  • Solid quality (59/100) 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 196.98 kr 94.33 Fair Value kr 365.96 May 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 94.33 – kr 196.98 · fair‑value band kr 274.47 – kr 457.45 · the kr 185.02 price screens below the kr 365.96 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

Melhus Sparebank, a savings bank, (MELG) currently trades at kr 185.02, while our model-based Fair Value estimate is kr 365.96, implying the stock looks roughly 97.8% undervalued today. The Quality Score stands at 59/100 (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, Melhus Sparebank, a savings bank, generated revenue of 335M NOK at a net margin of 41.5%. Revenue declined 2.1% year over year. It earns a return on equity of 8.4%. Net debt stands at 2.5B NOK. Fundamentals as of Jul 17, 2026

Our scenario range runs from kr 274.47 (bear case) to kr 457.45 (bull case); at kr 185.02, 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 6% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 98%, MELG 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 483.54 kr 507.69 kr 538.82 76
Gordon GGM kr 105.05 kr 189.31 kr 260.60 70
P/E Multiple kr 492.97 kr 657.30 kr 821.62 63
All 6 models by family
Dividend Discount
Gordon GGM kr 105.05 kr 189.31 kr 260.60 70
DDM Multi-Stage kr 105.05 kr 161.09 kr 202.22 61
Multiples
P/E Multiple kr 492.97 kr 657.30 kr 821.62 63
P/B Multiple kr 644.66 kr 859.54 kr 1,074 55
Asset-Based
NCAV (Graham) kr 307.21 kr 411.67 kr 614.43 50
Economic Profit
Residual Income kr 483.54 kr 507.69 kr 538.82 76

Widest divergence: Multiples (kr 657.30) versus Dividend Discount (kr 161.09). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 335M NOK
Revenue growth (YoY) -2.1%
Net margin 41.5%
Return on equity 8.4%
Free cash flow 187M NOK FY2025
P/E ratio 14.1
More key figures
Operating margin 47.1%
EPS (TTM) kr 14.01
Dividend yield 7.1%
EPS growth (YoY) -10.5%
Net debt 2.5B NOK FY2025

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

Quality Score breakdown

Overall quality 59/100

Of which business quality 53 · Market factors (momentum, volatility) 64

Profitability 34
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 0
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 60
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

Melhus Sparebank, a savings bank, offers various banking products and services to businesses, agriculture customers, and private individuals in Norway. The company offers bank, Boligsparing for Ungdom, mutual fund, and retirement saving accounts.

Full company description

Melhus Sparebank, a savings bank, offers various banking products and services to businesses, agriculture customers, and private individuals in Norway. The company offers bank, Boligsparing for Ungdom, mutual fund, and retirement saving accounts. It also provides insurance services for electric scooter, boat, motorcycle, moped, jet ski, caravan, motorhome, ATV, tractor, snowmobile, trailer, and veteran cars; house and belongings, consisting of household items, travel, cottages, valuable items, drones, and home and travel insurance for young people; life and health for child, disabled, critical illness, and accident; and dogs, cats, and horses insurance services. In addition, the company provides car, mortgage, motorcycle, motorhomes, and ATVs loan products, as well as leasing services. Further, it offers credit and bank cards, payment, online and mobile banking, and other daily banking services. Melhus Sparebank was founded in 1840 and is headquartered in Melhus, Norway.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Melhus Sparebank, a savings bank, reported revenue of kr 349M in FY2025 versus kr 296M in FY2021, a compound +4.2%/yr. Reported net income was kr 140M in FY2025, compounding +7.4%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
349M NOK
Latest YoY
−53.2%
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.
−4.4%
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.
+1.9%
Avg. growth/yr (25Y) 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.
+4.5%
Revenue +4.2%/yr
FY21 kr 296M
FY22 kr 400M
FY23 kr 658M
FY24 kr 746M
FY25 kr 349M
Net income +7.4%/yr
FY21 kr 105M
FY22 kr 101M
FY23 kr 135M
FY24 kr 140M
FY25 kr 140M
Character of growth · EPS growth decomposed (2013-2024) +3.1 % p.a.
Revenue per share +1.7 pp

of which total revenue +8.2 pp · buybacks/dilution −6.5 pp

EBIT margin +0.9 pp
Tax rate +0.5 pp
Residual (interest, one-offs) +0.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Melhus Sparebank, a savings bank, Fair Value". https://www.fairvalue-calculator.com/stock/MELG

Peer Group

Banks - Regional · 1083 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 58 · Above median
Fair Value upside +98% · Top 25%
Return on equity (TTM) 8% · Below median
Return on assets 1% · Above median
Net margin (TTM) 41% · Top 25%
Operating margin (TTM) 47% · Above median
Revenue growth -2% · Bottom 25%
Dividend yield (TTM) 7.4% · Top 25%
Debt / equity 1.48× · Higher than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 13.1× · Pricier than median
P/B 0.30× · Cheaper than 75% of peers
P/S (TTM) 1.52× · Cheaper than 75% of peers
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 16.3× · Pricier 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 34 · sector 41
HEALTH 26 · 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 Melhus Sparebank, a savings bank, (MELG) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of kr 365.96 versus a price of kr 185.02, about +98% (undervalued).
What is the fair value of MELG?
Our model-based fair value for Melhus Sparebank, a savings bank, is kr 365.96 (as of Jul 17, 2026), built from audited fundamentals. The current price is kr 185.02.
What is the quality score of MELG?
Melhus Sparebank, a savings bank, has a Quality Score of 59/100. 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 Melhus Sparebank, a savings bank, (MELG)?
Melhus Sparebank, a savings bank, reported trailing-twelve-month revenue of about 335M NOK (latest available figure, as of Jul 17, 2026).
What is the net profit margin of MELG?
The net profit margin of Melhus Sparebank, a savings bank, is about 41.5%, meaning it keeps roughly 41.5% of revenue as net income. Based on the latest reported figures.
Does Melhus Sparebank, a savings bank, pay a dividend?
Melhus Sparebank, a savings bank, currently shows a dividend yield of about 7.07% 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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