Ireland Bank, American Dep. Shares (IREBY)

[dublin13]

This a report by goodbody stosckbrokers that ive taken from a post on www.boards.ie The report is from Goodbody stockbrokers

I dont own bank of ireland myself but due to family and personal interests I keep a close on it and really hope they stay public and in time who knows



We think the reported NAV the far side is €3.7bn, about 11.8-13.4c per share. As per our May 19 note, we value this on 0.5-0.6x, which implies a discount to the implied TERP and rights price, at 6-8c. If investors want to look at our franchise value, looking at normalised earnings 5 years out, then we come up with a discounted valuation of €2.7-3.3bn, which equates on a per share basis - mid point - of 9.6-10.9c. Our present value is our future value discounted by 20% per annum for 5 years. Hence, investors wanting to get involved with BOI have to believe in our franchise value, but given all the risks, we are more comfortable with the NAV based valuations. ***