Valuation Methods for Marvipol Development: DDM, Peer Comparison, and More
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DDM valuation We value Marvipol Development using the DDM method based on our financial forecasts and assumptions regarding the dividend payout ratio. The company cancelled its previous dividend policy in April’23, due to an unfavourable market environment), concurrently with a decision of no dividend payment in 2023E. In our model, we assume that starting from 2024E, the group will return to regular payments with a dividend payout ratio of 50%.
Peer comparison
We present a multiples valuation by comparing Marvipol Development to domestic residential developers, based on the P/E and P/BV multiples. In our analysis, we give 0% weight to the method. Given our forecasts for 2023E-25E, the company currently trades at a P/E multiple of 5.0/9.6/5.8x. In the case of the P/BV multiple, the average discount to its peers is close to 70%.
