Elisa (HLSE:ELISA): Exploring Valuation After Sales and Net Income Growth with Fresh 2025 Guidance

Elisa Oyj (HLSE:ELISA) just released its latest earnings, showing higher sales and net income for both the third quarter and the first nine months of 2025. The company also shared updated full-year guidance.

See our latest analysis for Elisa Oyj.

Elisa Oyj’s latest earnings update follows a year where momentum has faded, with the company’s share price slipping 13.8% over the past month and recording a year-to-date share price return of -9.7%. Its 1-year total shareholder return of -8.5% reflects broader market caution, even as the company reports reliable growth in sales and net income. Recent guidance signals management’s confidence in digital services and mobile data as key revenue drivers for the future.

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With shares now trading at a meaningful discount to analyst price targets despite positive earnings momentum, the key question is whether Elisa Oyj is undervalued and due for a rebound, or if the market already anticipates any upside from this point.

Price-to-Earnings of 16.8x: Is it justified?

With Elisa Oyj trading at a price-to-earnings (P/E) ratio of 16.8x, the stock is priced slightly below the European telecom industry average but above that of its closest peers. The last close was €38.24, suggesting the market may be cautious compared to analyst enthusiasm.

The price-to-earnings ratio measures how much investors are willing to pay per euro of earnings. It is a standard yardstick for valuing profitable companies. For telecoms, where growth tends to be steady rather than explosive, the P/E offers insight into expectations for future profit stability and incremental gains.

Elisa’s P/E is lower than the sector average of 17.8x. This implies that investors see the company as more attractively priced than the broader European telecom group. However, Elisa looks expensive versus its peer group, which trades at just 13.6x. This notable premium could reflect confidence in its earnings quality, or perhaps market optimism about its digital services segment.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 16.8x (ABOUT RIGHT)

However, ongoing share price weakness and below-peer returns remain notable risks. These factors could dampen sentiment if growth expectations falter or market headwinds intensify.

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

Another View: SWS DCF Model Points to Undervaluation

While the price-to-earnings ratio suggests Elisa Oyj trades close to its industry’s fair value, our DCF model offers a strikingly different conclusion. It estimates Elisa’s fair value at €71.07, which is far above the current share price. Could investors be missing a significant long-term opportunity, or is there a catch behind this apparent discount?

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 Elisa 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 834 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 Elisa Oyj Narrative

If you have a different perspective or want to dive deeper into the numbers, you can craft your own Elisa Oyj analysis in just a few minutes using our tools. Do it your way

A great starting point for your Elisa Oyj research is our analysis highlighting 3 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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