W5 Solutions Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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 (SEK46.65) is trading below our estimate of fair value (SEK94.86)

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 Ratio	1.8x
Sales	SEK 398.71m
Market Cap	SEK 706.54m

W5 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.9x
Enterprise Value/EBITDA	215.9x
PEG Ratio	n/a

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.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	6x
AVT B AVTECH Sweden	8.8x	21.2%	SEK 333.2m
GOMX GomSpace Group	2.7x	n/a	SEK 607.0m
AAC AAC Clyde Space	0.9x	54.3%	SEK 273.1m
CTT CTT Systems	11.7x	24.2%	SEK 3.5b
W5 W5 Solutions	1.8x	16.9%	SEK 706.5m

Price-To-Sales vs Peers: W5 is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (6x).

Price to Sales Ratio vs Industry

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

3 Companies	Price / Sales	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: W5 is expensive based on its Price-To-Sales Ratio (1.8x) compared to the European Aerospace & Defense industry average (1.4x).

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 Ratio	1.8x
Fair PS Ratio	2x

Price-To-Sales vs Fair Ratio: W5 is good value based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (2x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	SEK 46.65	SEK 57.83 +24.0%	11.9%	SEK 65.00	SEK 48.50	n/a	3
Dec ’25	SEK 38.60	SEK 57.83 +49.8%	11.9%	SEK 65.00	SEK 48.50	n/a	3
Nov ’25	SEK 42.00	SEK 57.83 +37.7%	11.9%	SEK 65.00	SEK 48.50	n/a	3
Oct ’25	SEK 45.95	SEK 89.00 +93.7%	4.5%	SEK 93.00	SEK 85.00	n/a	2
Sep ’25	SEK 54.20	SEK 89.00 +64.2%	4.5%	SEK 93.00	SEK 85.00	n/a	2
Aug ’25	SEK 55.70	SEK 89.00 +59.8%	4.5%	SEK 93.00	SEK 85.00	n/a	2
Jul ’25	SEK 66.20	SEK 99.00 +49.5%	6.1%	SEK 105.00	SEK 93.00	n/a	2
Jun ’25	SEK 62.70	SEK 104.00 +65.9%	10.6%	SEK 115.00	SEK 93.00	n/a	2
May ’25	SEK 72.60	SEK 110.00 +51.5%	9.1%	SEK 120.00	SEK 100.00	n/a	2
Apr ’25	SEK 76.20	SEK 110.00 +44.4%	9.1%	SEK 120.00	SEK 100.00	n/a	2
Mar ’25	SEK 94.60	SEK 110.00 +16.3%	9.1%	SEK 120.00	SEK 100.00	n/a	2
Feb ’25	SEK 98.50	SEK 113.50 +15.2%	5.7%	SEK 120.00	SEK 107.00	n/a	2
Jan ’25	SEK 87.50	SEK 113.50 +29.7%	5.7%	SEK 120.00	SEK 107.00	n/a	2
Dec ’24	SEK 69.40	SEK 113.50 +63.5%	5.7%	SEK 120.00	SEK 107.00	SEK 38.60	2
Nov ’24	SEK 78.20	SEK 117.50 +50.3%	2.1%	SEK 120.00	SEK 115.00	SEK 42.00	2
Oct ’24	SEK 78.10	SEK 115.00 +47.2%	4.3%	SEK 120.00	SEK 110.00	SEK 45.95	2
Sep ’24	SEK 81.30	SEK 112.50 +38.4%	2.2%	SEK 115.00	SEK 110.00	SEK 54.20	2
Aug ’24	SEK 94.00	SEK 95.50 +1.6%	4.7%	SEK 100.00	SEK 91.00	SEK 55.70	2
Jul ’24	SEK 70.00	SEK 95.50 +36.4%	4.7%	SEK 100.00	SEK 91.00	SEK 66.20	2

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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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/30 05:24
End of Day Share Price	2024/12/30 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

W5 Solutions AB (publ) is covered by 3 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Hugo Lisjo	Carnegie Commissioned Research
Tom Guinchard	Pareto Securities
Hjalmar Ahlberg	Redeye