Hampiðjan hf. – Valuation as of 1 Jan 2025

Key assumptions

• Sales grows on average by 10% in the years 2025–2027 and then by 5.5% per year for the remainder of the forecast period.
• Gross margin as a percentage of sales averages 30.1% per year over the forecast period.
• Other operating expenses amount to 17.5% of sales per year during the forecast period.
• Depreciation of operating assets and intangible assets (excluding goodwill) is 7.4% per year during the forecast period.
• The average cost of interest-bearing debt is 5.6% per year during the forecast period, with financing mostly in EUR.
• Return on the book value of equity holdings in associates is 15% per year during the forecast period.
• Income tax is 20% per year during the forecast period and is calculated on profit excluding the earnings from associates and equity securities.
• Investment in operating assets and intangible assets (excluding goodwill) follows sales growth. Over the forecast period, investment averages 8.2% of sales per year.
• Dividend payments amount to 52.5% of the owners’ total comprehensive income from the previous in 2025, and thereafter 70% per year during the forecast period, assuming an equity ratio of around 50%.
• Terminal growth at the end of the forecast period is 5%, corresponding to 2% real growth.
• See other general assumptions under “Valuation”.

Results

• Based on the above assumptions, the estimated share value is ISK 86.2 as of 1 January 2025 (EUR 1 = ISK 144).