A Look at Norbit’s (OB:NORBT) Valuation After Securing Two Major Defence Contracts

Norbit (OB:NORBT) just landed a sizeable NOK 120 million contract manufacturing order for its segment PIR. The contract was secured from an undisclosed European client in the defence and security sector. Deliveries are planned for late 2025 and early 2026.

See our latest analysis for Norbit.

This latest contract builds on Norbit’s strong run this year and has caught investor interest after a prior NOK 100 million order was announced for early 2026 deliveries. The share price has surged, delivering a 112.1% year-to-date return and a 1,173.9% total shareholder return over the past five years, which suggests real momentum is building in response to both growth and demand signals.

If Norbit’s rapid climb has you curious about other opportunities, now is the perfect time to broaden your horizons and discover fast growing stocks with high insider ownership

But with shares soaring and a new price target that is already close to current levels, the key question now is whether Norbit remains undervalued or if the market is already factoring in all of its future growth. Is there still a buying opportunity, or has everything been priced in?

Most Popular Narrative: 14.8% Undervalued

Norbit’s current price is notably below the narrative’s fair value estimate, pointing to meaningful upside if key expectations play out. Investors are watching for concrete catalysts driving the company’s rapid expansion.

Significant revenue growth is expected to continue, supported by rapid adoption of Norbit's proprietary sonar and IoT solutions in industrial, maritime, and defense markets. This is fueled by global digitalization and automation trends, which should directly raise top-line growth. With product mix improvements, this could support stable or improving gross margins. Heightened demand for environmental monitoring, security, and smart infrastructure, driven by government and private investment in sustainability and regulatory compliance, is expanding Norbit's addressable market. This is creating strong forward visibility for revenue and potential further operating leverage.

Read the complete narrative.

What numbers are behind this bullish thesis? The narrative forecasts eye-popping gains in profits, revenues, and margins by 2028, with an ambitious profit multiple normally reserved for growth giants. Want to see which projections anchor this valuation? Read on for the details the narrative is built on.

Result: Fair Value of $240 (UNDERVALUED)

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

However, delays in large defense contracts or rising wage costs could quickly undermine Norbit’s strong outlook and limit the momentum highlighted by analysts.

Find out about the key risks to this Norbit narrative.

Another View: Market Ratios Tell a Different Story

Looking at Norbit’s current price-to-earnings ratio of 36x, it appears expensive compared to the European Electronic industry average of 25.6x, and also above its estimated fair ratio of 34.6x. This higher valuation signals the market may already be pricing in strong future growth, which leaves less margin for error if high expectations are not met. Is the premium justified, or could investors get caught chasing momentum?

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Norbit 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 832 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 Norbit Narrative

If you prefer to delve into the numbers yourself or think a different story is unfolding, you can easily assemble your own perspective in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Norbit.

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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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