A Look at Vestas (CPSE:VWS) Valuation Following Latest European Wind Turbine Orders

Vestas Wind Systems (CPSE:VWS) just shared news of a series of firm wind turbine orders, covering Germany, Italy, Denmark, and the United Kingdom. This steady stream of deals highlights the company’s momentum in Europe’s clean energy transition.

See our latest analysis for Vestas Wind Systems.

After a challenging period, Vestas Wind Systems' latest wave of turbine deals is helping to reignite optimism. This is reflected in a 13.2% 1-month share price return and a 21.5% gain over the past 90 days. However, the one-year total shareholder return remains slightly in the red, reminding investors that momentum has only recently started to turn. Nonetheless, this adds to the sense that growth expectations are picking up alongside Europe's accelerating energy transition.

If you’re watching the shift toward clean energy and want to see which companies are gaining ground, you might also explore fast growing stocks with high insider ownership

With shares still trading below analyst price targets despite recent gains, and robust order momentum in place, the real question for investors now is whether Vestas Wind Systems represents an undervalued opportunity or if the market already reflects its recovery and future growth.

Most Popular Narrative: 7.2% Undervalued

Vestas Wind Systems is trading at a modest discount to the most popular narrative's calculated fair value, with a last close of DKK130.45 compared to the narrative's fair value of DKK140.61. This invites a closer look at why analysts think the market may be underestimating the company's direction.

Global prioritization of energy security and sustainability, with many governments accelerating grid investments and permitting reforms (for example, Germany, UK, and EU-wide alignment), is expanding Vestas' addressable market and could materially increase order volume and top-line growth.

Read the complete narrative.

Curious what revenue ambitions and profit margin leaps underlie this bullish target? The narrative hints at international policy shifts and offshore project upgrades but keeps the real drivers under wraps. Only the full narrative reveals which financial forecasts power these valuations and why Vestas could be at a major turning point.

Result: Fair Value of DKK140.61 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing pricing pressure and unanticipated costs in Vestas’ offshore segment could challenge the optimistic outlook if market dynamics do not improve.

Find out about the key risks to this Vestas Wind Systems narrative.

Build Your Own Vestas Wind Systems Narrative

If this outlook doesn’t fit your perspective or you’d rather dig into the data and draw your own conclusions, you’re free to start building a narrative yourself in just a few minutes. Do it your way

A great starting point for your Vestas Wind Systems research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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