What is the true value of PST Group? This question was commented on for Verslo \u017einios by Vitalij \u0160ostak, co-founder of PLY Analytics.<\/p>\n\n\n\n
\u201cSince the majority of PST Group\u2019s assets consist of investment property \u2013 real estate, inventories in the form of property development projects, and receivables \u2013 the company\u2019s liquidation value could indeed be very close to its book value.\u201d<\/p>\n\n\n\n
According to V. \u0160ostak, the company has recently been operating at a loss, which contrasts against the backdrop of a construction sector demonstrating strong overall results. Therefore, the most appropriate valuation metric for comparison in this case is P\/BV. He also notes that it would be more accurate to compare the company not with Merko Ehitus or Scandinavian companies, but with Nordecon, taking into account the Lithuanian company\u2019s \u201cqualitative aspects \u2013 profitability indicators, business model, and transparency.\u201d \u201cAssuming a 20% discount compared to Nordecon\u2019s P\/BV valuation, the ‘fair’ price for PST Group would be around EUR 1.10 per share,\u201d says V. \u0160ostak.<\/p>\n\n\n\n
Another reference point for assessing the ‘fair’ price is the premium applied in recent tender offers, which in the case of Enefit Green reached 27% above the average market price. \u201cThe size of the premium was justified based on the ‘average of comparable transactions.’ Based on this principle, the offer price would amount to around EUR 0.70,\u201d said V. \u0160ostak.<\/p>\n\n\n\n