Skanska (OM:SKA B) Valuation: Assessing Fair Value After Major US Contract Wins and New Strategic Leadership

Skanska (OM:SKA B) just landed two substantial contracts in the US, including a USD 175 million deal for a major downtown Nashville development and a USD 148 million joint project in New Jersey. These moves could shift the company’s outlook going into next year.

See our latest analysis for Skanska.

Skanska’s recent contract wins in the US, combined with fresh strategic leadership, seem to have fueled a swell in momentum, reflected in an 11.6% one-month share price return and an impressive 24.4% total shareholder return over the past year. While the company’s share price has seen some volatility, overall sentiment appears to be turning positive as investors take note of Skanska's growth initiatives and stronger project backlog.

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Yet with Skanska’s strong returns and new contract momentum, investors are now asking whether the stock is still undervalued or if expectations for continued growth are already reflected in the share price.

Most Popular Narrative: 1.5% Undervalued

Skanska's current share price sits just below the narrative's fair value, putting the company within close reach of what analysts consider justified. This creates an intriguing setup as investors debate if recent momentum is truly captured in today's valuation.

Strong order backlog, favorable market trends, and alignment with public investments position Skanska for sustained revenue and earnings growth across geographies. Emphasis on ESG leadership, selective project focus, and resilient financial health enhance margins, stability, and shareholder value despite regional market fluctuations.

Read the complete narrative.

Curious what’s driving this near-fair value estimate? The real story involves aggressive growth bets, rising margin targets, and a strategic transformation that challenges industry norms. Dig in to see which bold projections could keep Skanska outperforming its sector.

Result: Fair Value of $268 (UNDERVALUED)

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

However, ongoing weakness in key property markets and uncertainty about asset sales could still disrupt Skanska’s growth momentum and earnings projections.

Find out about the key risks to this Skanska narrative.

Build Your Own Skanska Narrative

If you want to put the numbers to the test or see things from a different angle, you can shape your own story with the data in just a few minutes. Do it your way

A great starting point for your Skanska research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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