Vestas (CPSE:VWS) Valuation in Focus After Securing 347 MW in New North American Orders

Vestas Wind Systems (CPSE:VWS) revealed it has secured new orders totaling 347 MW across the USA and Canada for undisclosed projects. This highlights consistent demand for the company’s wind energy solutions in key North American markets.

See our latest analysis for Vestas Wind Systems.

Momentum in Vestas Wind Systems’ share price has been undeniable lately, with a standout 22.9% 1-month share price return and a robust 45.4% year-to-date gain following news of new North American orders. Long-term total shareholder return is still mixed, but the recent rally suggests that investor optimism and growth expectations are increasing.

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With shares up more than 45% year-to-date but trading just shy of analysts’ targets, the big question is whether Vestas Wind Systems is still undervalued or if the market has already priced in future growth potential.

Most Popular Narrative: 0.8% Undervalued

With Vestas Wind Systems closing at DKK152.25, the most widely followed narrative suggests a fair value of DKK153.50, just slightly above the current market price. The gap may be small, but the underlying assumptions reveal big expectations for both revenue and future margins.

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.

What will drive the next leap in Vestas’ value? The key to this narrative is a bold bet on rising revenue, stronger profitability, and a margin profile that could transform the company’s earnings power. Want to see just how optimistic the numbers get? Dive into the full narrative to uncover which forecasts analysts think will unlock this company’s future potential.

Result: Fair Value of DKK153.50 (UNDERVALUED)

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

However, order intake remains volatile, and unexpected offshore ramp-up costs could still challenge Vestas' optimistic future. This may temper near-term valuation expectations.

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

Build Your Own Vestas Wind Systems Narrative

If you see things differently or want to dig deeper into the numbers, you can shape your own investment story in just a few minutes, your way with 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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