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    Assessing Ringkjøbing Landbobank (CPSE:RILBA)’s Valuation After a Strong Year of Shareholder Returns

    Simply Wall St·12/09/2025 13:10:38
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    Ringkjøbing Landbobank (CPSE:RILBA) has quietly outperformed many European banks this year, and the latest move in its share price has investors revisiting whether the valuation still matches its steady growth profile.

    See our latest analysis for Ringkjøbing Landbobank.

    At around DKK 1,432 per share, Ringkjøbing Landbobank’s modest recent share price pullback sits against a strong year to date, with the 1 year total shareholder return of 24.48 percent suggesting momentum is still broadly constructive rather than fading.

    If Ringkjøbing Landbobank’s steady compounding appeals to you, this might also be a good moment to explore fast growing stocks with high insider ownership for other quietly compounding ideas on your radar.

    With the shares still trading at a noticeable discount to analyst targets despite robust long term returns and steady earnings growth, investors now face a key question: is Ringkjøbing Landbobank undervalued, or is the market already pricing in its future growth?

    Price to Earnings of 15.3x: Is it justified?

    On a price to earnings ratio of 15.3 times at the last close of DKK 1,432, Ringkjøbing Landbobank screens more expensive than many bank peers, suggesting investors are paying up for its earnings profile.

    The price to earnings multiple compares the share price with the company’s earnings per share and is a common way to judge how richly a bank is valued relative to the profits it generates.

    For Ringkjøbing Landbobank, the current 15.3 times earnings multiple sits above both the estimated fair price to earnings ratio of 11.5 times and the peer average of 11.7 times. This implies the market is willing to assign a premium to its profitability even though earnings growth is modest and last year’s profits dipped.

    Against the broader European banks industry, where the average price to earnings multiple is nearer 10.3 times, Ringkjøbing Landbobank’s valuation looks even more stretched. This reinforces the view that buyers today are accepting a meaningfully higher entry price than is typical for the sector.

    Explore the SWS fair ratio for Ringkjøbing Landbobank

    Result: Price-to-Earnings of 15.3x (OVERVALUED)

    However, rising funding costs or a sharper than expected slowdown in Danish credit demand could compress margins and challenge the current premium valuation.

    Find out about the key risks to this Ringkjøbing Landbobank narrative.

    Another View on Value

    While the price to earnings ratio paints Ringkjøbing Landbobank as expensive, our DCF model suggests the opposite, with fair value around DKK 2,244.84 versus today’s DKK 1,432. Trading about 36 percent below that estimate, is the market underestimating its long term cash generation?

    Look into how the SWS DCF model arrives at its fair value.

    RILBA Discounted Cash Flow as at Dec 2025
    RILBA Discounted Cash Flow as at Dec 2025

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Ringkjøbing Landbobank for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 909 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Build Your Own Ringkjøbing Landbobank Narrative

    If you see the story differently, or would rather dig into the numbers yourself, you can build a personalised view in just minutes: Do it your way.

    A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding Ringkjøbing Landbobank.

    Ready for more investment ideas?

    If you want to keep an edge, use the Simply Wall St Screener to uncover fresh opportunities that complement or even surpass Ringkjøbing Landbobank in your portfolio.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.