The Baltic stock exchange: the ‘ironic’ situation of Šiaulių bankas shares

PLY Analytics co-founder Vitalij Šostak commented for Verslo žinios on the attractiveness of Šiaulių bankas shares compared with Estonian banks.

“Fresh results have somewhat improved Šiaulių bankas position against the backdrop of Estonian banks, but essentially did not change it”, notes V. Šostak. “Šiaulių bankas has for some time now lost its long-standing position as a ‘clear value leader,’ and the latest results did not help it regain that position.”

V. Šostak draws attention to the lagging return on equity and the almost vanished valuation discount of the Lithuanian bank compared with Estonian banks: “in the context of P/BV, SAB is more expensive than Coop Pank despite lower return on equity, while the remaining P/BV premium of LHV Group is fully justified by an almost two-times higher ROE. In the context of P/E, Šiaulių bankas is already significantly more expensive than Coop Pank and has practically caught up with LHV Group.”

“It is rather ironic that for a very long time the opposite question used to be relevant for Šiaulių bankas shares. Moreover, Šiaulių bankas valuations are starting to look fairly ambitious even in their own historical context,” concludes V. Šostak.

Read more in the Verslo žinios article: Baltijos birža: „ironiška“ Šiaulių banko akcijų padėtis.