Skanska (OM:SKA B) Valuation in Focus After Major NOK 750m University Contract Win

If you’re weighing your next move with Skanska (OM:SKA B), a fresh twist just landed. The company has signed a sizeable contract worth NOK 750 million, or about SEK 710 million, with Statsbygg to build a major new university facility in Trondheim for NTNU. Big contracts like these not only boost Skanska’s order book but also reinforce its standing in the Nordic construction sector, often catching the attention of investors looking for steady, project-driven growth.

Looking at the broader picture, this university deal is the latest in a string of wins and updates from Skanska. Last week, the company announced another large contract win in the US, and just days before, new board committee appointments were disclosed. Skanska’s momentum has been building this year, with the stock climbing 18% over the past year and notching a 6% gain in the past three months. Compared to its longer-term results, the stock’s upward trend this year stands out against a backdrop of ambitious projects and stable financial growth.

This leaves investors at a crossroads. Is Skanska now undervalued based on its steady contract flow and share performance, or has the market already priced in the company’s forward momentum?

Most Popular Narrative: 5.6% Undervalued

The most widely followed narrative values Skanska shares as modestly undervalued, suggesting the current price is around 5.6% below what analysts believe is justified by its performance and outlook.

Skanska's record-high order backlog (19 months of production, SEK 268 billion) and strong book-to-bill ratios (greater than 100% across all geographies) position the company to benefit from sustained government infrastructure spending, especially in the US and Europe. This supports future revenue growth. The company is seeing robust demand and improved outlooks in key markets, such as Swedish civil and Central European residential construction. These trends are driven by continued urbanization, population growth, and increased public investments in defense, energy, and water infrastructure, creating the foundation for mid and long-term earnings expansion.

Want to know the bold projections fueling this price target? Analysts are betting on Skanska’s substantial order book, future margins, and a valuation multiple you might not expect for a builder. Think you’ve got the inside track on what’s truly driving fair value? Dive into the narrative’s full story to uncover the financial forecasts reshaping expectations for Skanska.

Result: Fair Value of SEK 254.25 (UNDERVALUED)

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

However, slower recoveries in key property markets or increased industry costs could still present challenges to Skanska’s expected earnings momentum and optimistic outlook.

Find out about the key risks to this Skanska narrative.

Another View: Multiples Tell a Different Story

While one valuation finds Skanska undervalued, another method compares its current price to industry peers using a single key ratio. This approach actually suggests Skanska looks a bit expensive. Which lens gives the fuller picture?

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

Stay updated when valuation signals shift by adding Skanska to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Skanska Narrative

If you’re keen to form your own view or spot something others may have missed, you can build a personal narrative 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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