Norbit (OB:NORBT): Valuation Check After NOK 170m European Defence Contract Win

Norbit (OB:NORBT) just landed roughly NOK 170 million in contract manufacturing orders from a European defence and security client, with most deliveries slated for early 2026, giving investors fresh visibility into future revenue.

See our latest analysis for Norbit.

That backdrop helps explain why, despite a softer 90 day share price return of around negative 9 percent, Norbit still boasts an 84 percent year to date share price gain and a standout five year total shareholder return near 1,000 percent. This suggests momentum has paused rather than disappeared.

If this kind of contract driven growth story appeals, it could be worth scanning aerospace and defense stocks to spot other defence focused names that might be building similar long term trajectories.

With revenue and earnings still growing double digits, the share price well off recent highs, and analysts seeing upside from here, the key question is whether Norbit remains undervalued or if the market is already pricing in further growth.

Most Popular Narrative Narrative: 25.8% Undervalued

With Norbit last closing at NOK178.20 against a narrative fair value of NOK240.00, the story leans firmly toward a still discounted future.

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 fueled by global digitalization and automation trends. This should directly raise top-line growth and, with product mix improvements, support stable or improving gross margins.

Read the complete narrative.

Curious how fast growing sonar and IoT demand, rising margins, and a lower future earnings multiple can still justify a sharply higher price? Read on.

Result: Fair Value of $240 (UNDERVALUED)

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

However, heavy R&D and capacity spending, along with dependence on a few large defense projects, could squeeze cash flow and derail that bullish earnings path.

Find out about the key risks to this Norbit narrative.

Another Angle on Valuation

There is a catch: Norbit trades on about 30 times earnings versus 22.8 times for the wider European electronics group, even though our fair ratio suggests the market could comfortably justify 33.3 times. That premium leaves less room for error if growth stumbles.

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

Build Your Own Norbit Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in just minutes using Do it your way.

A good starting point is our analysis highlighting 3 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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