W5 Solutions AB (publ)

OM:W5 Stock Report

Market Cap: SEK 505.1m

W5 Solutions Valuation

Is W5 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of W5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: W5 (SEK33.6) is trading below our estimate of fair value (SEK94.97)

Significantly Below Fair Value: W5 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for W5?

Key metric: As W5 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for W5. This is calculated by dividing W5's market cap by their current revenue.
What is W5's PS Ratio?
PS Ratio1.3x
SalesSEK 398.71m
Market CapSEK 505.10m

Price to Sales Ratio vs Peers

How does W5's PS Ratio compare to its peers?

The above table shows the PS ratio for W5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5x
GOMX GomSpace Group
2.7xn/aSEK 583.1m
AVT B AVTECH Sweden
5.7x13.4%SEK 216.9m
AAC AAC Clyde Space
0.9x54.3%SEK 258.4m
CTT CTT Systems
10.6x24.2%SEK 3.1b
W5 W5 Solutions
1.3x16.9%SEK 505.1m

Price-To-Sales vs Peers: W5 is good value based on its Price-To-Sales Ratio (1.3x) compared to the peer average (5x).

Price to Sales Ratio vs Industry

How does W5's PS Ratio compare vs other companies in the European Aerospace & Defense Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
W5 1.3xIndustry Avg. 1.6xNo. of Companies10PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: W5 is good value based on its Price-To-Sales Ratio (1.3x) compared to the European Aerospace & Defense industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is W5's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

W5 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.3x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: W5 is good value based on its Price-To-Sales Ratio (1.3x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 W5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 33.60
SEK 57.83
+72.1%
11.9%SEK 65.00SEK 48.50n/a3
Nov ’25SEK 42.00
SEK 57.83
+37.7%
11.9%SEK 65.00SEK 48.50n/a3
Oct ’25SEK 45.95
SEK 89.00
+93.7%
4.5%SEK 93.00SEK 85.00n/a2
Sep ’25SEK 54.20
SEK 89.00
+64.2%
4.5%SEK 93.00SEK 85.00n/a2
Aug ’25SEK 55.70
SEK 89.00
+59.8%
4.5%SEK 93.00SEK 85.00n/a2
Jul ’25SEK 66.20
SEK 99.00
+49.5%
6.1%SEK 105.00SEK 93.00n/a2
Jun ’25SEK 62.70
SEK 104.00
+65.9%
10.6%SEK 115.00SEK 93.00n/a2
May ’25SEK 72.60
SEK 110.00
+51.5%
9.1%SEK 120.00SEK 100.00n/a2
Apr ’25SEK 76.20
SEK 110.00
+44.4%
9.1%SEK 120.00SEK 100.00n/a2
Mar ’25SEK 94.60
SEK 110.00
+16.3%
9.1%SEK 120.00SEK 100.00n/a2
Feb ’25SEK 98.50
SEK 113.50
+15.2%
5.7%SEK 120.00SEK 107.00n/a2
Jan ’25SEK 87.50
SEK 113.50
+29.7%
5.7%SEK 120.00SEK 107.00n/a2
Dec ’24SEK 69.40
SEK 113.50
+63.5%
5.7%SEK 120.00SEK 107.00n/a2
Nov ’24SEK 78.20
SEK 117.50
+50.3%
2.1%SEK 120.00SEK 115.00SEK 42.002
Oct ’24SEK 78.10
SEK 115.00
+47.2%
4.3%SEK 120.00SEK 110.00SEK 45.952
Sep ’24SEK 81.30
SEK 112.50
+38.4%
2.2%SEK 115.00SEK 110.00SEK 54.202
Aug ’24SEK 94.00
SEK 95.50
+1.6%
4.7%SEK 100.00SEK 91.00SEK 55.702
Jul ’24SEK 70.00
SEK 95.50
+36.4%
4.7%SEK 100.00SEK 91.00SEK 66.202

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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