Sandvik AB (publ)

DB:SVKB Stock Report

Market Cap: €22.1b

Sandvik Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 SVKB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SVKB (€17.31) is trading below our estimate of fair value (€30.79)

Significantly Below Fair Value: SVKB is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SVKB. This is calculated by dividing SVKB's market cap by their current earnings.
What is SVKB's PE Ratio?
PE Ratio20.8x
EarningsSEK 12.21b
Market CapSEK 254.14b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SVKB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.8x
RAA RATIONAL
43.4x6.9%€10.2b
G1A GEA Group
19.1x8.3%€7.8b
KRN Krones
14.8x16.2%€3.7b
GIL DMG MORI
22xn/a€3.6b
SVKB Sandvik
20.8x15.0%€254.1b

Price-To-Earnings vs Peers: SVKB is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (24.8x).

Price to Earnings Ratio vs Industry

How does SVKB's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
SVKB 20.8xIndustry Avg. 14.7xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SVKB is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the German Machinery industry average (14.7x).

Price to Earnings Ratio vs Fair Ratio

What is SVKB'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.

SVKB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio21.3x

Price-To-Earnings vs Fair Ratio: SVKB is good value based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.3x).

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 SVKB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€17.31
€20.15
+16.4%
13.9%€25.07€15.04n/a20
Nov ’25€18.04
€20.44
+13.4%
14.1%€25.38€15.32n/a20
Oct ’25€19.34
€20.98
+8.5%
13.9%€26.39€15.66n/a20
Sep ’25€19.01
€20.67
+8.7%
14.2%€25.94€13.14n/a20
Aug ’25€18.66
€20.32
+8.9%
14.9%€25.53€12.94n/a20
Jul ’25€18.79
€20.84
+10.9%
15.2%€26.32€13.34n/a20
Jun ’25€20.10
€20.44
+1.7%
14.5%€23.69€13.18n/a20
May ’25€18.79
€20.17
+7.4%
14.5%€23.46€13.05n/a20
Apr ’25€20.69
€19.89
-3.9%
15.5%€23.70€13.53n/a18
Mar ’25€20.88
€20.11
-3.7%
13.5%€23.21€14.01n/a19
Feb ’25€19.27
€19.92
+3.4%
13.7%€23.05€13.92n/a19
Jan ’25€19.56
€19.43
-0.7%
14.4%€23.32€13.99n/a19
Dec ’24€18.24
€18.97
+4.0%
14.5%€22.73€13.64n/a19
Nov ’24€15.95
€18.44
+15.6%
14.5%€22.05€13.23€18.0419
Oct ’24€17.59
€19.67
+11.9%
13.2%€22.94€14.37€19.3420
Sep ’24€17.53
€19.45
+11.0%
12.8%€22.21€13.91€19.0120
Aug ’24€18.39
€19.79
+7.6%
13.8%€22.89€12.70€18.6622
Jul ’24€17.80
€19.13
+7.5%
16.5%€22.45€10.16€18.7922
Jun ’24€16.60
€19.61
+18.2%
15.3%€22.84€10.34€20.1022
May ’24€18.31
€20.04
+9.5%
15.3%€23.41€10.60€18.7922
Apr ’24€19.46
€19.79
+1.7%
15.5%€23.16€10.69€20.6922
Mar ’24€19.49
€19.70
+1.1%
14.9%€23.46€10.83€20.8822
Feb ’24€19.07
€18.89
-1.0%
15.2%€22.60€10.63€19.2722
Jan ’24€16.95
€18.04
+6.4%
16.3%€21.97€10.76€19.5622
Dec ’23€17.74
€18.02
+1.6%
15.9%€22.40€10.97€18.2422
Nov ’23€15.95
€17.79
+11.6%
15.0%€22.45€11.00€15.9522

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

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