HMS Networks AB (publ)

DB:4H3A Stock Report

Market Cap: €1.6b

HMS Networks Valuation

Is 4H3A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 4H3A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4H3A (€31.88) is trading below our estimate of fair value (€47.65)

Significantly Below Fair Value: 4H3A is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4H3A?

Key metric: As 4H3A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 4H3A. This is calculated by dividing 4H3A's market cap by their current earnings.
What is 4H3A's PE Ratio?
PE Ratio54.4x
EarningsSEK 345.65m
Market CapSEK 18.81b

Price to Earnings Ratio vs Peers

How does 4H3A's PE Ratio compare to its peers?

The above table shows the PE ratio for 4H3A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.6x
FEW Funkwerk
10.1xn/a€164.4m
CEK CeoTronics
33.2x25.1%€41.1m
JEN Jenoptik
14.1x12.3%€1.2b
6285 Wistron NeWeb
16.8x18.7%NT$55.3b
4H3A HMS Networks
54.4x42.5%€18.8b

Price-To-Earnings vs Peers: 4H3A is expensive based on its Price-To-Earnings Ratio (54.4x) compared to the peer average (18.6x).

Price to Earnings Ratio vs Industry

How does 4H3A's PE Ratio compare vs other companies in the European Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
4H3A 54.4xIndustry Avg. 31.4xNo. of Companies7PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 4H3A is expensive based on its Price-To-Earnings Ratio (54.4x) compared to the Global Communications industry average (32.2x).

Price to Earnings Ratio vs Fair Ratio

What is 4H3A'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.

4H3A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio54.4x
Fair PE Ratio22.9x

Price-To-Earnings vs Fair Ratio: 4H3A is expensive based on its Price-To-Earnings Ratio (54.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).

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 4H3A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€31.88
€40.05
+25.6%
12.6%€45.08€35.02n/a2
Nov ’25€34.08
€40.05
+17.5%
12.6%€45.08€35.02n/a2
Aug ’25€35.80
€44.39
+24.0%
3.4%€45.91€42.88n/a2
Jul ’25€36.72
€45.27
+23.3%
3.9%€47.03€43.51n/a2
Jun ’25€37.80
€44.32
+17.3%
4.3%€46.25€42.40n/a2
May ’25€35.58
€44.32
+24.6%
4.3%€46.25€42.40n/a2
Apr ’25€39.90
€41.76
+4.7%
4.8%€43.74€39.77n/a2
Mar ’25€41.00
€41.76
+1.8%
4.8%€43.74€39.77n/a2
Feb ’25€41.70
€41.76
+0.1%
4.8%€43.74€39.77n/a2
Jan ’25€45.28
€37.16
-17.9%
7.1%€39.78€34.53n/a2
Dec ’24€37.90
€37.16
-2.0%
7.1%€39.78€34.53n/a2
Nov ’24€31.12
€38.80
+24.7%
9.6%€43.11€34.06€34.083
Oct ’24€34.98
€39.98
+14.3%
3.9%€41.94€38.16€35.343
Sep ’24€36.88
€42.13
+14.2%
4.4%€43.43€39.52€38.663
Aug ’24€36.62
€42.13
+15.0%
4.4%€43.43€39.52€35.803
Jul ’24€43.98
€41.80
-5.0%
5.3%€43.76€38.06€36.724
Jun ’24€41.38
€41.60
+0.5%
4.3%€44.10€40.13€37.803
May ’24€40.44
€41.60
+2.9%
4.3%€44.10€40.13€35.583
Apr ’24€35.46
€38.07
+7.4%
12.5%€44.62€33.46€39.903
Mar ’24€37.90
€38.07
+0.5%
12.5%€44.62€33.46€41.003
Feb ’24€33.78
€38.07
+12.7%
12.5%€44.62€33.46€41.703
Jan ’24€31.14
€36.02
+15.7%
18.9%€45.22€28.94€45.283
Dec ’23€28.52
€34.17
+19.8%
23.2%€45.36€28.13€37.903
Nov ’23€25.70
€34.17
+33.0%
23.2%€45.36€28.13€31.123

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

Discover undervalued companies

JEOL

JP¥287.3b

Engages in the research, development, manufacture, and marketing of scientific and metrology instruments, semiconductor and industrial equipment, and medical equipment worldwide.

JEL

JP¥34.60

7D

-1.7%

1Y

-2.3%

UniDevice

€1.8m

Together with its subsidiary, PPA International AG, engages in wholesale of electronic entertainment and communication devices.

UDC

€0.12

7D

0%

1Y

-92.0%

KATEK

€221.7m

Provides electronics value chain services in Germany, Europe, and internationally.

KTEK

€15.10

7D

0%

1Y

1.0%