Huhtamäki (HLSE:HUH1V): A Fresh Look at Valuation After Recent Share Price Dip

Huhtamäki Oyj (HLSE:HUH1V) has caught the eye of investors again after its recent share price dip. Even without a single big headline driving the move, swings like this often leave shareholders and new investors alike wondering whether they are seeing a warning sign or a fresh signal to look closer. With the stock drifting lower, the real story worth unpacking is whether this negative sentiment is justified by Huhtamäki’s financials, or if it is just another chapter in the wider market’s ups and downs. Zooming out, Huhtamäki’s stock has had a challenging 12 months, sliding roughly 11%. The momentum remains soft, as returns over the past month also trended lower. Despite muted share performance, the company’s most recent results did show annual revenue and net income growth, offering a counterpoint to the market’s current skepticism. That contrast between solid business progress and this year’s share price retreat sets up an interesting valuation debate. The question now is whether this presents an attractive entry point or if the market has already priced in all it knows about Huhtamäki’s growth prospects.

Most Popular Narrative: 17.4% Undervalued

According to the most closely followed narrative, Huhtamäki shares are trading at a notable discount to their fair value, suggesting there could be upside ahead if near-term catalysts play out. The analysis takes a detailed look at long-term trends in margins and revenue, framing the case for a potential upward re-rating.

"Based on Huhtamäki’s historical trading multiples, its growth profile, and comparisons with peers, a fair forward PE range for the business would be approximately 15x to 18x. Historical Context: Huhtamäki’s forward PE has recently been around 15.8x, with historical values fluctuating between roughly 12x and 24x. This suggests that, in calmer market conditions, a multiple in the 15x to 18x range is reasonable."

Is this re-rating opportunity the real deal or just another round of market optimism? Find out what financial assumptions are fueling the bullish price target, including which specific profit and growth metrics have been dialed up to back a potential 30% upside. Hidden within the narrative are key figures that could shift sentiment in the months ahead.

Result: Fair Value of €36.42 (UNDERVALUED)

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

However, downside risks remain. A failure to achieve revenue growth reversion or weaker market sentiment could keep Huhtamäki’s valuation under pressure.

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

Another Perspective: Discounted Cash Flow Puts Valuation Into Focus

While the previous argument rests on historical pricing trends, our DCF model tells a different story. It paints Huhtamäki as meaningfully undervalued using future cash flows. Does this deeper dive back up the optimism or raise fresh doubts?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Huhtamäki Oyj for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Huhtamäki Oyj Narrative

If you would like to see the numbers for yourself or have a different view of Huhtamäki, you can quickly build your own narrative and perspective. Do it your way

A great starting point for your Huhtamäki Oyj research is our analysis highlighting 5 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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