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Vend Marketplaces (OB:VENDA) has repurchased NOK 441 million in outstanding bonds across two major bond issues. This move can reshape its financial position. This large-scale buyback signals management’s focus on streamlining balance sheet commitments.

See our latest analysis for Vend Marketplaces.

The recent bond repurchase comes as Vend Marketplaces’ shares have whipsawed throughout the year, ultimately delivering a 1-year total shareholder return of -1.9%. While the share price has rebounded over the last month, momentum looks mixed following a notable drop in the previous quarter. The long-term three-year total return still stands out at over 186%.

If you’re curious what else could be on the move as companies optimize their finances, broaden your search and discover fast growing stocks with high insider ownership

With shares treading water this year and the stock still trading below analyst price targets, investors now face a key question: is Vend Marketplaces undervalued after its debt reduction, or is the market already pricing in future growth?

Vend Marketplaces’ shares are trading at a price-to-earnings ratio of 10.5x, noticeably below both the peer group and industry averages. At the last close price of NOK 358, this suggests that the market is pricing in more modest prospects for the business compared to peers.

The price-to-earnings (PE) ratio reflects how much investors are willing to pay for each unit of the company’s earnings. For a digital marketplace group like Vend, which has shown substantial earnings growth, a lower PE could either signal market skepticism about sustainability or represent potential value if profits hold up.

Comparatively, the broader global Interactive Media and Services industry trades at 22.7x earnings, while Vend’s peers average even higher at 27.5x. This wide discount stands out and implies the market has not fully credited recent earnings strength. If fundamentals persist, the PE could rise to those levels.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 10.5x (UNDERVALUED)

However, weak annual net income growth and modest revenue trends could challenge the case for Vend Marketplaces being materially undervalued.

Find out about the key risks to this Vend Marketplaces narrative.

While the current earnings-based valuation points to a possible bargain, our DCF model challenges that view. The SWS DCF model estimates Vend Marketplaces’ fair value at NOK 303.47. With shares trading at NOK 358, the stock could be overvalued.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Vend Marketplaces for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 927 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you want to dig into the details yourself, take a few minutes to explore the numbers and build your own perspective. Do it your way

A great starting point for your Vend Marketplaces research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include VENDA.OL.

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