Peer group. The peer group, based on multiples for 2023-25, includes domestic and foreign companies active in the construction materials manufacturing segment. Direct competitors in the listed foams, sealants and adhesives segment include Sika and Henkel. The company is also building its position in the insulation segment, where Rockwool, Kingspan and Saint Gobain are present, among others. Among the domestic producers of building materials listed on the WSE are Grupa Kęty, Snieżka, Ferro, Pekabex, Rawlplug.
We note that Selena FM's average gross margin and EBITDA for 2018-2022 are 6.7 pp (30.2% vs. 36.8%) and 3.6 pp (9.3% vs. 12.9%) lower, respectively, than those of domestic competitors, and 9.6 pp (30.2% vs. 39.8%) and 7.2 pp (9.3% vs. 16.5%) lower, respectively, than those of foreign competitors. The company therefore has considerable scope to optimise certain processes in the future, which could lead to further upside in the valuation.
The comparative valuation of Selena FM with its peers (domestic companies 50%, foreign companies 50%) based on EV/EBITDA and P/E ratios (50% weighting each) and based on forecasts for 2023-2025 (equal weighting for each year) implies a current valuation of one Selena FM share at PLN 41.7 per share. For domestic companies only, the NPV of one SEL share is PLN 32.9, while for foreign companies it is PLN 50.5.
