Arjo AB (publ)

DB:A39 Stock Report

Market Cap: €804.5m

Arjo Valuation

Is A39 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 A39 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A39 (€2.83) is trading below our estimate of fair value (€8.2)

Significantly Below Fair Value: A39 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A39?

Key metric: As A39 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for A39. This is calculated by dividing A39's market cap by their current earnings.
What is A39's PE Ratio?
PE Ratio18.4x
EarningsSEK 505.00m
Market CapSEK 9.28b

Price to Earnings Ratio vs Peers

How does A39's PE Ratio compare to its peers?

The above table shows the PE ratio for A39 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23x
DRW3 Drägerwerk KGaA
7.2x2.0%€798.0m
EUZ Eckert & Ziegler
24.5x5.9%€879.3m
SBS Stratec
33.6x25.4%€336.7m
PUS PULSION Medical Systems
26.7xn/a€134.4m
A39 Arjo
18.4x25.1%€9.3b

Price-To-Earnings vs Peers: A39 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (23x).

Price to Earnings Ratio vs Industry

How does A39's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
A39 18.4xIndustry Avg. 29.5xNo. of Companies8PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: A39 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the European Medical Equipment industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is A39'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.

A39 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.4x
Fair PE Ratio25.3x

Price-To-Earnings vs Fair Ratio: A39 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the estimated Fair Price-To-Earnings Ratio (25.3x).

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 A39 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€2.78
€3.60
+29.2%
5.8%€3.89€3.37n/a5
Nov ’25€2.97
€3.85
+29.4%
15.3%€4.98€3.41n/a5
Oct ’25€3.91
€4.64
+18.7%
9.0%€5.11€3.97n/a5
Sep ’25€3.57
€4.46
+25.0%
11.3%€4.99€3.61n/a5
Aug ’25€3.55
€4.46
+25.6%
11.3%€4.99€3.61n/a5
Jul ’25€3.60
€4.54
+26.2%
18.4%€5.14€3.10n/a4
Jun ’25€3.96
€4.40
+11.1%
18.4%€4.98€3.01n/a4
May ’25€3.95
€4.40
+11.3%
18.4%€4.98€3.01n/a4
Apr ’25€4.54
€4.57
+0.8%
17.1%€5.32€3.10n/a5
Mar ’25€4.33
€4.57
+5.5%
17.1%€5.32€3.10n/a5
Feb ’25€4.30
€4.50
+4.7%
16.6%€5.34€3.11n/a5
Jan ’25€3.56
€3.87
+8.7%
22.5%€4.81€2.62n/a4
Dec ’24€3.26
€3.87
+18.9%
22.5%€4.81€2.62n/a4
Nov ’24€3.11
€4.30
+38.3%
14.1%€4.73€3.44€2.973
Oct ’24€3.56
€4.33
+21.6%
12.1%€4.70€3.59€3.913
Sep ’24€3.60
€4.37
+21.5%
13.1%€4.78€3.56€3.573
Aug ’24€3.85
€4.37
+13.6%
13.1%€4.78€3.56€3.553
Jul ’24€3.24
€4.35
+34.5%
12.1%€4.73€3.61€3.603
Jun ’24€3.59
€4.61
+28.7%
14.5%€5.29€3.70€3.963
May ’24€3.99
€4.12
+3.4%
20.5%€5.30€3.36€3.953
Apr ’24€3.53
€3.92
+11.2%
25.1%€5.31€3.10€4.543
Mar ’24€3.57
€3.99
+11.8%
25.1%€5.39€3.15€4.333
Feb ’24€3.54
€4.17
+17.9%
22.0%€5.37€3.13€4.303
Jan ’24€3.52
€4.81
+36.5%
15.6%€5.69€4.06€3.564
Dec ’23€3.78
€5.57
+47.2%
6.2%€5.96€5.04€3.264
Nov ’23€4.06
€5.81
+43.2%
11.6%€6.89€5.05€3.114

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Shandong Weigao Group Medical Polymer

HK$20.1b

Engages in the research and development, production, wholesale, and sale of medical devices in the People’s Republic of China.

UK2

HK$0.52

7D

-8.8%

1Y

-37.3%

LNA Santé

€244.4m

Engages in the management and operation of health establishments.

2N3

€23.25

7D

-5.5%

1Y

18.9%

Top Glove Corporation Bhd

RM 7.8b

An investment holding company, manufactures, trades in, and sells gloves in Malaysia, Thailand, the People’s Republic of China, and internationally.

5OU

RM 0.98

7D

0.5%

1Y

-82.5%