Atlas Copco AB (publ)

OM:ATCO A Stock Report

Market Cap: SEK 803.5b

Atlas Copco Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ATCO A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ATCO A (SEK171.55) is trading below our estimate of fair value (SEK175.3)

Significantly Below Fair Value: ATCO A is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ATCO A. This is calculated by dividing ATCO A's market cap by their current earnings.
What is ATCO A's PE Ratio?
PE Ratio29.1x
EarningsSEK 28.76b
Market CapSEK 803.54b

Price to Earnings Ratio vs Peers

How does ATCO A's PE Ratio compare to its peers?

The above table shows the PE ratio for ATCO A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.8x
SAND Sandvik
20.7x15.0%SEK 252.3b
ALFA Alfa Laval
27.9x9.6%SEK 192.7b
INDT Indutrade
35.6x11.0%SEK 97.0b
TREL B Trelleborg
23x11.7%SEK 82.4b
ATCO A Atlas Copco
29.1x7.7%SEK 803.5b

Price-To-Earnings vs Peers: ATCO A is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the peer average (26.8x).

Price to Earnings Ratio vs Industry

How does ATCO A's PE Ratio compare vs other companies in the SE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
ATCO A 29.1xIndustry Avg. 24.2xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ATCO A is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the Swedish Machinery industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

What is ATCO A'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.

ATCO A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.1x
Fair PE Ratio31x

Price-To-Earnings vs Fair Ratio: ATCO A is good value based on its Price-To-Earnings Ratio (29.1x) compared to the estimated Fair Price-To-Earnings Ratio (31x).

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 ATCO A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 171.55
SEK 187.36
+9.2%
14.9%SEK 238.00SEK 122.00n/a22
Nov ’25SEK 175.45
SEK 187.91
+7.1%
15.1%SEK 238.00SEK 122.00n/a22
Oct ’25SEK 194.70
SEK 191.59
-1.6%
15.8%SEK 240.00SEK 122.00n/a22
Sep ’25SEK 186.15
SEK 192.27
+3.3%
16.2%SEK 240.00SEK 122.00n/a22
Aug ’25SEK 182.50
SEK 192.27
+5.4%
16.2%SEK 240.00SEK 122.00n/a22
Jul ’25SEK 198.80
SEK 188.77
-5.0%
15.3%SEK 238.00SEK 122.00n/a22
Jun ’25SEK 200.80
SEK 185.77
-7.5%
15.1%SEK 230.00SEK 122.00n/a22
May ’25SEK 195.45
SEK 183.86
-5.9%
14.6%SEK 222.00SEK 122.00n/a22
Apr ’25SEK 180.80
SEK 169.00
-6.5%
14.4%SEK 216.00SEK 115.00n/a22
Mar ’25SEK 180.10
SEK 163.96
-9.0%
14.5%SEK 200.00SEK 115.00n/a23
Feb ’25SEK 169.05
SEK 164.43
-2.7%
14.8%SEK 200.00SEK 115.00n/a23
Jan ’25SEK 173.55
SEK 161.35
-7.0%
13.6%SEK 198.00SEK 115.00n/a23
Dec ’24SEK 162.85
SEK 157.91
-3.0%
14.7%SEK 198.00SEK 115.00n/a23
Nov ’24SEK 144.50
SEK 156.68
+8.4%
14.9%SEK 198.00SEK 115.00SEK 175.4522
Oct ’24SEK 147.25
SEK 157.36
+6.9%
14.5%SEK 198.00SEK 120.00SEK 194.7022
Sep ’24SEK 145.10
SEK 157.27
+8.4%
14.3%SEK 198.00SEK 120.00SEK 186.1522
Aug ’24SEK 149.60
SEK 156.73
+4.8%
13.8%SEK 192.00SEK 120.00SEK 182.5022
Jul ’24SEK 155.40
SEK 152.00
-2.2%
13.8%SEK 192.00SEK 120.00SEK 198.8022
Jun ’24SEK 157.20
SEK 147.46
-6.2%
13.2%SEK 186.00SEK 120.00SEK 200.8022
May ’24SEK 148.10
SEK 140.53
-5.1%
14.5%SEK 175.00SEK 105.00SEK 195.4523
Apr ’24SEK 131.54
SEK 131.83
+0.2%
10.7%SEK 163.00SEK 105.00SEK 180.8023
Mar ’24SEK 123.86
SEK 131.09
+5.8%
10.6%SEK 163.00SEK 105.00SEK 180.1023
Feb ’24SEK 123.78
SEK 130.96
+5.8%
11.9%SEK 172.00SEK 100.00SEK 169.0523
Jan ’24SEK 123.10
SEK 129.46
+5.2%
14.6%SEK 174.00SEK 86.00SEK 173.5524
Dec ’23SEK 130.90
SEK 127.96
-2.2%
14.9%SEK 174.00SEK 86.00SEK 162.8524
Nov ’23SEK 118.36
SEK 124.46
+5.2%
14.6%SEK 174.00SEK 86.00SEK 144.5024

Analyst Forecast: Target price is less than 20% higher than the current share price.

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