We update our valuation methodology (see p. 4-7) and derive a fair value range of SEK 253-327 per share based on a ’22e exit multiple EV/EBIT range of 6-8x, which acknowledges the higher risk in Ferronordic’s operations in Russia/CIS compared to global CE peers. The upper end of the value range is 39% below global CE peers and the lower end is 54% below. Risks to our valuation range include the potential implementation of an increased utilisation fee on CE machines in Russia and further FX headwinds in ’22e-’23e.
