OMV Petrom (SNP.RO) is the cheapest first tier stock, with a P/E of 4.83, down from the P/E calculated by ZF based on the 2018 results, 5. This shows investors are willing to pay less for the profits generated by this company.
In comparison, Austria’s OMV group is trading at a P/E of 10.3 in Vienna, while Hungary’s MOL P/E is 8.5, and Spain’s Repsol’s is 11.8, according to the latest data available for companies comparable to Petrom that ZF analyzed.
On the other hand, Banca Transilvania (TLV.RO), the most traded stock on the Romanian stock exchange sees a P/E of 9.14, compared with 7.7 based on the 2018 earnings and the trading price in the spring. In comparison, BRD, the second most traded banking stock in Romania, has a P/E of 5.9, according to the calculations of brokerage firm Tradeville.
“The difference can be explained by the expansion of TLV. And by the generous shareholder reward program through both dividends and bonus shares, which stimulated investor interest in TLV over BRD,” says Luca Nicolae, investment analyst of Tradeville.
(English version by Loredana Fragile-Cristescu)