Sweco AB (publ)

OM:SWEC A Stock Report

Market Cap: SEK 57.5b

Sweco Valuation

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

Below Fair Value: SWEC A (SEK158.5) is trading below our estimate of fair value (SEK254.09)

Significantly Below Fair Value: SWEC A is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SWEC A. This is calculated by dividing SWEC A's market cap by their current earnings.
What is SWEC A's PE Ratio?
PE Ratio30.4x
EarningsSEK 1.89b
Market CapSEK 57.52b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SWEC A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.8x
SKA B Skanska
18.6x18.0%SEK 90.9b
PEAB B Peab
15.6x10.4%SEK 23.1b
NCC B NCC
12.7x6.4%SEK 15.8b
INSTAL Instalco
16.4x22.8%SEK 8.1b
SWEC A Sweco
30.4x14.5%SEK 57.5b

Price-To-Earnings vs Peers: SWEC A is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the peer average (15.8x).

Price to Earnings Ratio vs Industry

How does SWEC A's PE Ratio compare vs other companies in the European Construction Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SWEC A 30.4xIndustry Avg. 13.1xNo. of Companies19PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SWEC A is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the European Construction industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is SWEC 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.

SWEC A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio30.4x
Fair PE Ratio26.4x

Price-To-Earnings vs Fair Ratio: SWEC A is expensive based on its Price-To-Earnings Ratio (30.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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