Metso Oyj Valuation

Is METSOH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of METSOH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: METSOH (€8.09) is trading below our estimate of fair value (€11.07)

Significantly Below Fair Value: METSOH is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for METSOH?

Key metric: As METSOH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for METSOH. This is calculated by dividing METSOH's market cap by their current earnings.
What is METSOH's PE Ratio?
PE Ratio13.4x
Earnings€513.00m
Market Cap€6.88b

Price to Earnings Ratio vs Peers

How does METSOH's PE Ratio compare to its peers?

The above table shows the PE ratio for METSOH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.5x
WEIR Weir Group
25.9x19.0%UK£5.7b
SPX Spirax Group
26.6x9.0%UK£5.1b
SOM Somero Enterprises
7.8xn/aUK£146.6m
IMI IMI
17.7x12.0%UK£4.5b
METSOH Metso Oyj
13.4x11.3%€6.9b

Price-To-Earnings vs Peers: METSOH is good value based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (19.5x).


Price to Earnings Ratio vs Industry

How does METSOH's PE Ratio compare vs other companies in the European Machinery Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies30PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: METSOH is good value based on its Price-To-Earnings Ratio (13.4x) compared to the European Machinery industry average (17.5x).


Price to Earnings Ratio vs Fair Ratio

What is METSOH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

METSOH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate METSOH's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst METSOH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€8.09
€10.99
+35.9%
11.3%€13.30€8.80n/a17
Nov ’25€8.88
€11.11
+25.1%
12.7%€14.00€8.80n/a17
Oct ’25€8.87
€11.56
+30.4%
12.3%€14.00€9.00n/a17
Sep ’25€9.14
€11.79
+29.0%
10.8%€14.00€9.40n/a16
Aug ’25€9.21
€11.83
+28.3%
12.0%€15.00€9.40n/a16
Jul ’25€10.23
€12.14
+18.7%
12.2%€15.20€9.40n/a16
Jun ’25€11.13
€11.85
+6.5%
12.6%€15.20€9.40n/a16
May ’25€10.68
€11.84
+10.9%
12.6%€15.20€9.40n/a16
Apr ’25€11.00
€11.29
+2.7%
11.3%€13.00€8.90n/a15
Mar ’25€10.09
€11.20
+11.0%
10.6%€12.50€8.90n/a15
Feb ’25n/a
€10.72
0%
10.7%€12.50€8.40n/a15
Jan ’25n/a
€10.71
0%
9.6%€12.50€8.40n/a15
Dec ’24€9.04
€11.06
+22.3%
6.3%€12.50€10.00n/a15
Nov ’24n/a
€11.13
0%
7.4%€13.00€10.00€8.8815
Oct ’24n/a
€12.24
0%
9.0%€14.25€10.00€8.8716
Sep ’24€10.33
€12.35
+19.6%
8.6%€14.25€10.00€9.1415
Aug ’24€10.37
€12.19
+17.6%
10.2%€14.25€9.10€9.2116
Jul ’24€10.86
€12.37
+13.9%
11.6%€14.25€9.10€10.2316
Jun ’24€10.12
€12.10
+19.5%
12.3%€14.00€9.10€11.1316
May ’24n/a
€11.34
0%
11.5%€13.60€9.10€10.6816
Apr ’24n/a
€11.22
0%
11.5%€13.60€9.10€11.0016
Mar ’24n/a
€11.19
0%
11.7%€13.60€9.10€10.0916
Feb ’24n/a
€10.83
0%
10.2%€12.80€8.80n/a15
Jan ’24n/a
€10.09
0%
7.6%€11.50€8.80n/a14
Dec ’23n/a
€9.85
0%
9.1%€11.50€8.50€9.0414
Nov ’23n/a
€9.78
0%
8.2%€11.00€8.50n/a14

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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