Ísfélagið hf. – Valuation as of 1 Jan 2026

Valuation Summary

• The value per share as of 1 January 2026 is estimated at ISK 109.9 (USD 1 = ISK 125).
• The valuation is based on a ten-year forecast using the residual income method, with a 10% nominal required return on equity and a 3% terminal growth (i.e. zero real growth).
• The decrease in share value from last year’s valuation is primarily explained by lower margins in the updated forecast, including due to an increase in fishing fees.

Key assumptions

• Operating revenue follow inflation and grow at an average annual rate of 3.2% over the forecast period (i.e. zero real growth).
• Gross margin from sales is 34% annually over the forecast period.
• Operating assets are depreciated at an annual rate of 10%.
• The average cost of debt is 5.7%, with financing predominantly in EUR.
• Associates generate an 10% return on the book value of their equity stake and distribute approximately 60% of earnings as dividends.
• Corporate income tax is 20%, calculated on profit excluding income from associates and equities.
• Fishing quotas recognized on the balance sheet at the beginning of the forecast period are revalued annually through other comprehensive income (OCI), in line with inflation. This is a deviation from the company’s current accounting practices.
• The revaluation of fishing quotas is recognized net of income tax, with the corresponding tax recorded as a deferred tax liability.
• Capital expenditure is assumed to maintain the real value of operating assets over the forecast period.
• No purchases of fishing quotas are assumed during the forecast period.
• Dividends are projected at 51% of total comprehensive income from the previous year in 2026, and 90% thereafter.
• The equity ratio averages 67% over the forecast period (35% excluding capitalized fishing quotas).
• Other general assumptions are presented under “Valuation.”