Assessing Terveystalo (HLSE:TTALO) Valuation After Earnings Growth and 2025 Guidance Reaffirmation

Terveystalo Oyj (HLSE:TTALO) delivered third-quarter and nine-month earnings that showed improved net income and earnings per share, even as sales declined. The company also reaffirmed its 2025 guidance and expects a quicker pace of EPS growth ahead.

See our latest analysis for Terveystalo Oyj.

After a strong run earlier in the decade, Terveystalo Oyj’s share price has lost some momentum this year, with a -12.5% year-to-date return. Despite recent dips, the company’s 74% total shareholder return over the last three years stands out. The renewed earnings confidence could help turn sentiment in its favor.

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With shares still down and earnings set to accelerate in 2025, investors have to ask: is Terveystalo Oyj now undervalued, or is the market already factoring in its brighter outlook?

Most Popular Narrative: 21.1% Undervalued

With the most widely followed narrative putting Terveystalo Oyj’s fair value at €11.98 compared to a recent close of €9.45, sentiment leans toward significant upside. A compelling driver for this narrative centers on momentum in digital transformation and operational efficiency, setting high expectations for value unlocks in the near future.

Ongoing investments in digital health technology, including enhancements to service delivery, customer steering, automation, and AI within core systems, are set to improve operational efficiency and cost structure. This should drive higher net margins as digital channels gain share over brick-and-mortar locations while digital transformation accelerates.

Read the complete narrative.

Want to know the financial engine behind this bullish target? The narrative hinges on a robust mix of margin acceleration and ambitious revenue growth, benchmarked with a notable profit multiple. There is one number in here that will surprise you. Find out what sets this price apart.

Result: Fair Value of €11.98 (UNDERVALUED)

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

However, persistent softness in occupational health demand or a slower digital rollout could challenge the outlook and put future margin gains at risk.

Find out about the key risks to this Terveystalo Oyj narrative.

Build Your Own Terveystalo Oyj Narrative

If you see the story differently or want to check the numbers for yourself, you can build your own view of Terveystalo Oyj in just a few minutes. Do it your way

A great starting point for your Terveystalo Oyj research is our analysis highlighting 4 key rewards and 2 important warning signs 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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