Sandvik AB (publ)

DB:SVKB Stock Report

Market Cap: €22.0b

Sandvik Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 (€17.42) is trading below our estimate of fair value (€31.81)

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 Ratio20.7x
EarningsSEK 12.21b
Market CapSEK 252.38b

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 Average24.3x
RAA RATIONAL
39.9x7.1%€9.4b
G1A GEA Group
19.7x8.3%€8.0b
KRN Krones
15.3x16.0%€3.8b
GIL DMG MORI
22.4xn/a€3.6b
SVKB Sandvik
20.7x13.1%€252.4b

Price-To-Earnings vs Peers: SVKB is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (24.3x).

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 20.7xIndustry Avg. 17.3xNo. of Companies6PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SVKB is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the German Machinery industry average (17.2x).

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 Ratio20.7x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: SVKB is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

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€17.42
€20.36
+16.9%
13.5%€25.21€15.12n/a20
Dec ’25€17.51
€20.24
+15.6%
13.7%€25.16€15.10n/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€13.99€17.3119
Dec ’24€18.24
€18.97
+4.0%
14.5%€22.73€13.64€17.5119
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 17:47
End of Day Share Price 2025/01/02 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Sandvik AB (publ) is covered by 55 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Anders IdborgABG Sundal Collier
Lionel PellicerAlphaValue
Robert BateBarclays