Wednesday, September 09, 2020

Van Lanschot Kempen share price and intrinsic value guesstimate

The is also not usually used for financial companies like banks.

For banks and real estate, I have decided to use 1 x book value instead of 1,5 x book value which makes more sense for other industries. The Graham Value is the geometric average of 15 x Earnings per Share and Book Value x  1,5 (in this case x 1).

The company paid out a special dividend of EUR 1,5 / EUR 22,6 = 7% on December 19th 2018. 

Conclusion on December 2018: Like other Dutch stocks and banks, Van Lanschot seems like a buy at the moment.

Gross income ("Sales") EUR 553 million (Note: 9-9-2020 I don't understand the income statement.) 

Van Lanschot Bank has a relatively high Book Value per share: 28 Euros which is higher than the current share price: EUR 16,22.

The Earnings Yield 2 Eur EPS  / 16,22 Share Price is 12%, very acceptable for the Graham Screen. 

Graham Number EUR 30. 

Dividend: Eur 1,45 / 16,22 = 9%   (Will be lower in 2020 due to worldwide coronacrisis.)

Conclusion September 2020: You can buy a Euro for 54 cents?

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