How the Aker Share Price Rally and Rising Cash Flows Shape Its Current Value in 2025

Thinking about what to do with your Aker shares or considering getting in? You’re not alone, and it’s a smart question. Over the past few years, Aker has been on a journey that has turned more than a few heads. With a one-year gain of 38.3% and a 131.2% return over five years, the stock has delivered for investors who stuck with it. The year-to-date return of 22.3% signals that momentum has not let up, even as the rest of the market churns with uncertainty. While recent gains, such as the 0.9% bump this week and a 1.7% uptick in the past month, may seem modest, they still hint at evolving market sentiment and possibly new growth potential based on shifting dynamics in Aker’s main sectors.

Of course, the real question for most investors now is whether that growth streak is sustainable or if the stock has gotten ahead of itself. According to our valuation checks, Aker scores a 2 out of 6 on the undervaluation scale. That means it comes up undervalued in just 2 of our 6 core metrics, which complicates any easy buy-or-sell call. So how should you approach Aker’s current price, especially with the company appearing on more radars lately?

Let’s walk through the most commonly used valuation methods and see how Aker measures up. As we break down those numbers, I will highlight one often-overlooked perspective that could give you an even better handle on where Aker really stands in the market.

Aker scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Aker Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model works by projecting a company's future cash flows and then discounting those back to today’s value. This process gives an estimate of what the business is intrinsically worth. For Aker, the DCF analysis uses the 2 Stage Free Cash Flow to Equity method, presenting all figures in Norwegian Krone (NOK).

Currently, Aker’s latest twelve month Free Cash Flow stands at approximately NOK 6.8 Billion. According to analyst estimates and forecasts, this number is expected to grow rapidly, with projections reaching over NOK 91.4 Billion by 2035. The DCF model considers projections not only for the next five years, but extrapolates growth over a full decade, incorporating analysts’ shorter-term estimates and Simply Wall St’s longer-term projections.

Based on the discounted value of these future cash flows, the estimated intrinsic value for Aker comes to about NOK 15,803 per share. This suggests that the stock is trading at a 95.6% discount to its intrinsic value, indicating it appears significantly undervalued based on the cash flow outlook alone.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Aker.

Our Discounted Cash Flow (DCF) analysis suggests Aker is undervalued by 95.6%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Aker Price vs Sales

For companies like Aker, the Price-to-Sales (P/S) ratio is a commonly preferred metric, especially when consistent profitability may not fully reflect the company’s growth stage or investment cycles. The P/S ratio provides a clear view of how much investors are paying for each unit of revenue. This makes it useful for assessing value among firms with large, fluctuating bottom lines.

Generally, a "fair" or normal P/S ratio depends on factors such as expected growth rates and the risks accompanying a company's earnings. Higher anticipated growth or lower risk can justify a higher P/S. Stagnation or volatility typically calls for a lower multiple.

Aker currently trades at a P/S ratio of 3.82x, which is notably higher than the Industrials industry average of 0.79x and its peer group average of 2.83x. At first glance, this might make Aker look expensive compared to its wider sector. However, this simple comparison leaves out several key variables.

Simply Wall St's proprietary “Fair Ratio” addresses these limitations by combining inputs like Aker’s revenue growth, profit margins, risk profile, market cap, and its specific industry dynamics. This tailored approach goes beyond broad peer or sector averages and focuses on what the multiple should be for Aker, reflecting its unique qualities and future prospects.

Comparing Aker’s actual P/S multiple to its Fair Ratio, the difference is minimal. This suggests the current price is in line with the company’s fundamentals and outlook.

Result: ABOUT RIGHT

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Aker Narrative

Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your perspective on a company, tying together its story, your financial forecasts, and what you think is a fair value for its shares. Rather than relying solely on past numbers, Narratives let you map out where you believe Aker is headed, connecting the company’s strategy, potential, and industry trends to your own estimates for its revenue, earnings, and margins.

This approach goes a step beyond spreadsheets by letting you see how your view stacks up against other investors right within Simply Wall St’s platform, used by millions through the Community page. Narratives empower you to make smarter buy or sell decisions by directly comparing your Fair Value to today’s Price, in a format that updates automatically whenever new information, like an earnings report or breaking news, is released.

With Aker, you might see one investor’s optimistic Narrative forecasting strong oil price recovery and setting a high fair value, while a more cautious view prices in regulatory risks and assigns a much lower value. This makes it simple to weigh your conviction and decide when to act.

Do you think there's more to the story for Aker? Create your own Narrative to let the Community know!

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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