DNB Markets recommendations are based on absolute performance:

BUY - indicates an expected return greater than 10% within 12 months

HOLD - indicates an expected return between 0 and 10% within 12 months

SELL - indicates an expected negative return within 12 months

Target prices are based on several valuation methods such as discounted cash flow, pricing based on earnings multiples, multiples on book value, net asset value and peer group comparisons. Substantial material sources for coverage of this company include historical financial figures and communication with the company, as well and relevant third-party information. If you would like further information on the valuation, methodology or underlying assumptions used in this note, please contact the analyst.

The risk of investing in financial instruments is generally high. Past performance is not a reliable indicator of future performance, and estimates are based on assumptions that might not be realised. When investing in financial instruments, the value of the investment can increase or decrease, and the investor might lose all or part of their investment. Careful consideration of possible financial distress should be made before investing in any financial instrument.

We use a range of valuation methodologies to cross-reference our target prices. Specific metrics vary by sector depending on which factors the market has historically placed the most weight on and which factors the analyst believes will be most relevant in the future. Target prices are set on a 12-month forward basis and can be derived from a combination of metrics or one particular metric depending on what the analyst believes is most appropriate. Assumptions are clearly stated in the reports. For companies with a conglomerate structure, a sum-of-the-parts methodology might be used with each entity valued using the most appropriate technique. Absolute valuations are calculated using a discounted cash flow methodology with standardised assumptions for risk-free rate and equity risk premium. Analysts use their industry expertise to judge the appropriate levels for the other input factors. This is the most theoretically correct way to value a company but is very sensitive to subjective assumptions and long-term forecasts. Long-term forecasts obviously contain significant uncertainty so we do not typically use DCF valuations alone, but rather in combination with relative value methods.

Valuation multiples compare the pricing of companies with various earnings and asset value measures. They can be used to compare valuations with peer group companies and the company’s own historical valuation to establish a relative valuation. Examples of valuation multiples based on the share price and income generated by the companies include:

- Price to forward or trailing earnings (P/E)

- Dividend yield (price/dividend per share)

The share price can also be compared to the value of the company’s assets, for instance:

- Price to book value.

- Price to Net Asset Value (NAV).

Factors to consider with asset-based valuations include if the book value is made up of tangible or intangible assets and if the values have been adjusted to reflect current market prices.

Price-based multiples might be cross-referenced with Enterprise Value (EV) multiples that take into account equity and debt in the company:

- EV/EBITDA (earnings before interest, tax and depreciation)

- EV/EBIT (earnings before interest and tax)

- EV/FCF (free cash flow)

- EV/operating free cash flow (EBITDA minus capex)

Future growth rates and the cyclicality of earnings and investments as well as the sustainability of dividends must be taken into account when using these methods.

Inputs for all these calculations are a combination of data reported by the company (e.g. quarterly and annual accounts), market prices, and the analyst’s earnings estimates. Estimates are typically reviewed and updated at least quarterly to reflect company reports, announcements and guidance; changes in exchange rates and raw materials prices; and the performance trends of – and disclosures by – peer group companies.

Agilyx, Ahlsell AB, Aider Konsern AS, Aker ASA, Aker Biomarine, Aker BP, Aker Horizons, Aker Solutions, Alvotech, AMSC ASA, Archer, Arise AB, Asmodee, Atlantic Sapphire, Aurora Eiendom, Avance Gas, B2Impact, Bayport, BerGenBio, BEWI , BlueNord, Bonava, Borr Drilling , BrainCool, BW Energy, BW LPG, Cadeler, Carasent , Catella, Catena, CMB.TECH, Danske Bank, DNB, DNO, DOF Group, Dolphin Drilling, Dorian LPG, Edda Wind, Eidsiva Energi AS, Elkem, Elopak, Embracer Group, Entra, Eolus Vind, Equinor, EVINY AS (BKK AS), Flerie, Floatel, Fortnox, Gjensidige Forsikring, Golar LNG, Golden Ocean, GRK, Hafslund Eco AS, Hedin Mobility Group, Helgeland Kraft AS, Hexagon Composites, Hoist Finance, Intrum, Klaveness Combination Carriers, KMC Properties, Kongsberg Gruppen, Kährs, Logistea, Multiconsult, Navigator Holdings Ltd, Nel, Nordea, Nordic Semiconductor, Norlandia Health & Care Group AS , Nortura SA, Norwegian Air Shuttle, Norwegian Property, Nova Austral, OBOS, Odfjell Technology, Olav Thon , Oncoinvent, Oncopeptides, Open Infra US Assets AB, Orkla, Otovo, Panoro Energy, Paratus Energy, Pearl Petroleum, PhotoCure, Public Property Invest, Qben Infra, Rogaland Sparebank, SalMar, Salmon Evolution, Sats, SBB Norden, Scorpio Tankers, Sea1 Offshore, Seadrill, SEB, SFL Corporation Ltd , Shelf Drilling North Sea, Småkraft, Solstad Offshore, Sparebank 1 SMN, SpareBank 1 Sør-Norge, SpareBank1 Nord-Norge, Sparebanken Møre, Sparebanken Norge, Sparebanken Sør, Sparebanken Øst, Star Bulk, Statkraft AS, Statnett SF, Stena Metall AB, Stillfront Group, Stolt-Nielsen, Subsea 7, Sunnhordland Kraftlag AS, Sveafastigheter, TGS, Tidewater, Tomra, Trident, Ventura Offshore, Vimian, Vow, Vår Energi, Wilh. Wilhelmsen Holding, Wästbygg Gruppen AB, XXL ASA, Yinson Production, Zelluna, Å Energi AS

Agilyx, Aider Konsern AS, Aker ASA, Aker Biomarine, Aker BP, Aker Horizons, Alvotech, AMSC ASA, Archer, Arise AB, Arjo, Asmodee, Atlantic Sapphire, Aurora Eiendom, BerGenBio, BlueNord, Bonava, Borr Drilling , BrainCool, BW Energy, BW LPG, Carasent , Catena, CMB.TECH, Danske Bank, DNB, DNO, DOF Group, Dolphin Drilling, Dorian LPG, Edda Wind, Eidsiva Energi AS, Elopak, Embracer Group, Entra, Eolus Vind, Equinor, EVINY AS (BKK AS), Flerie, Floatel, Fortnox, Golar LNG, Golden Ocean, GRK, Hafslund Eco AS, Hoist Finance, KMC Properties, Kongsberg Gruppen, Kährs, Logistea, Navigator Holdings Ltd, Nel, Nordea, Nordic Semiconductor, Norlandia Health & Care Group AS , Nortura SA, Norwegian Air Shuttle, Norwegian Property, OBOS, Odfjell Technology, Olav Thon , Oncoinvent, Oncopeptides, Orkla, Panoro Energy, Paratus Energy, Pearl Petroleum, Public Property Invest, Qben Infra, SalMar, Salmon Evolution, Sats, SBB Norden, Scorpio Tankers, Sea1 Offshore, Seadrill, SEB, SFL Corporation Ltd , Småkraft, Solstad Offshore, Sparebank 1 SMN, SpareBank 1 Sør-Norge, SpareBank1 Nord-Norge, Sparebanken Møre, Sparebanken Norge, Sparebanken Sør, Sparebanken Øst, Statkraft AS, Stena Metall AB, Stillfront Group, Sunnhordland Kraftlag AS, Sveafastigheter, Tidewater, Tomra, Trident, Ventura Offshore, Vimian, Vow, Vår Energi, XXL ASA, Yinson Production, Zelluna, Å Energi AS

Alvotech, Besqab, Eiendomsspar AS, Heimstaden AB, Surgical Science, Systemair, TF Bank

Share positions include people involved in the production of credit and equity research, including people that could reasonably be expected to have access to it before distribution.

Assa Abloy:100, Boozt:100, Corem:4, Electrolux:169, Electrolux Professional:169, Embracer Group:200, Ericsson:200, Husqvarna:254, Industrivärden:14, Investor:248, Nokia:64, Novo Nordisk:200, Skanska:200, SKF:160, SSAB:200, Svenska Handelsbanken:954, Telia Company:100, Volvo:15

Share positions as part of DNB Group. Holdings as part of DNB Markets investment services activity are not included. DNB Markets may have its own portfolio of bonds issued by the Company as part of its investment services activity.

Viaplay Group:7794009, Vow:71646656

(Include people that could reasonably be expected to have access to research before distribution)

Alligo :1000, Momentum Group:1000, Nordic Semiconductor:307, Scandic Hotels:758

Bonds: No positions

No positions

Bonds - Under normal market conditions, DNB Markets will quote prices for Norwegian bonds but has no legal obligation to act as Market Maker. DNB Markets will normally have its own portfolio of financial instruments as part of its investment services activity.

Equities - Under normal market conditions, DNB Markets will quote prices for shares and derivatives in the Nordic market as part of its role as Market Maker and Systematic Internaliser. DNB Markets will normally have its own portfolio of financial instruments as part of this operation.