Peab AB (publ)

DB:PEKB Stock Report

Market Cap: €2.0b

Peab Valuation

Is PEKB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PEKB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PEKB (€6.89) is trading above our estimate of fair value (€5.82)

Significantly Below Fair Value: PEKB is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PEKB?

Key metric: As PEKB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PEKB. This is calculated by dividing PEKB's market cap by their current earnings.
What is PEKB's PE Ratio?
PE Ratio15.6x
EarningsSEK 1.48b
Market CapSEK 23.08b

Price to Earnings Ratio vs Peers

How does PEKB's PE Ratio compare to its peers?

The above table shows the PE ratio for PEKB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average82.2x
NCH2 thyssenkrupp nucera KGaA
189.7x55.9%€1.1b
HOT HOCHTIEF
12.1x2.5%€8.8b
B5A0 BAUER
31.9x38.2%€174.3m
R3NK RENK Group
95x50.1%€1.9b
PEKB Peab
15.6x10.4%€23.1b

Price-To-Earnings vs Peers: PEKB is good value based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (81.9x).

Price to Earnings Ratio vs Industry

How does PEKB's PE Ratio compare vs other companies in the European Construction Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PEKB 15.6xIndustry Avg. 13.1xNo. of Companies20PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PEKB is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the European Construction industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is PEKB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PEKB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio14.5x

Price-To-Earnings vs Fair Ratio: PEKB is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PEKB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.89
€6.94
+0.8%
8.5%€7.78€6.48n/a3
Nov ’25€7.09
€7.00
-1.1%
8.5%€7.85€6.54n/a3
Oct ’25€7.16
€6.51
-9.1%
9.7%€7.31€5.77n/a3
Sep ’25€6.82
€6.51
-4.5%
9.7%€7.31€5.77n/a3
Aug ’25€6.78
€6.51
-4.0%
9.7%€7.31€5.77n/a3
Jul ’25€5.98
€6.06
+1.3%
12.4%€7.09€5.32n/a3
Jun ’25€5.80
€5.42
-6.5%
19.7%€6.85€4.28n/a3
May ’25€5.69
€4.97
-12.6%
10.6%€5.60€4.31n/a3
Apr ’25€5.66
€4.93
-12.9%
11.9%€5.76€4.43n/a3
Mar ’25€5.08
€4.93
-2.8%
11.9%€5.76€4.43n/a3
Feb ’25€4.54
€4.62
+1.6%
16.7%€5.70€3.94n/a3
Jan ’25€5.06
€4.28
-15.3%
20.1%€5.50€3.55n/a3
Dec ’24€4.28
€4.28
+0.06%
20.1%€5.50€3.55n/a3
Nov ’24€3.41
€4.28
+25.7%
20.1%€5.50€3.55€7.093
Oct ’24€3.86
€4.40
+14.0%
17.2%€5.46€3.78€7.163
Sep ’24€3.61
€3.99
+10.4%
2.2%€4.08€3.90€6.822
Aug ’24€3.91
€3.99
+2.0%
2.2%€4.08€3.90€6.782
Jul ’24€3.74
€4.26
+13.8%
10.0%€4.68€3.83€5.982
May ’24€4.62
€5.30
+14.6%
8.3%€5.74€4.86€5.692
Apr ’24€4.45
€5.92
+33.1%
3.7%€6.14€5.70€5.662
Mar ’24€5.09
€5.92
+16.4%
3.7%€6.14€5.70€5.082
Feb ’24€5.86
€6.19
+5.7%
5.8%€6.55€5.83€4.542
Jan ’24€5.31
€6.10
+14.9%
9.8%€6.69€5.50€5.062
Dec ’23€5.53
€6.10
+10.3%
9.8%€6.69€5.50€4.282
Nov ’23€5.39
€6.10
+13.1%
9.8%€6.69€5.50€3.412

Analyst Forecast: Target price is less than 20% higher than the current share price.

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