Nordnet (OM:SAVE): Assessing Valuation Following Strong Earnings Growth and Investor Interest

Nordnet (OM:SAVE) just announced its third quarter and nine-month earnings, showing growth in both net income and earnings per share compared to the previous year. This performance will be closely watched by investors.

See our latest analysis for Nordnet.

Nordnet’s upbeat earnings have helped underpin a steady build in momentum, with investors seeing a 15.6% year-to-date share price return and a standout 28.5% total shareholder return over the past year. The longer view is even more impressive, as three-year total shareholder returns sit above 130%, reflecting both sustained growth and growing market confidence.

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Still, with shares trading just shy of analyst targets and after such a strong run, investors have to ask whether Nordnet offers fresh upside at current levels or if the market is already pricing in its future growth.

Most Popular Narrative: Fairly Valued

At SEK275, Nordnet's last closing price nearly matches the average narrative fair value of SEK276.78, suggesting market consensus sits right around current levels. With analysts and the wider market in rare alignment, the stage is set for a deep dive into what is driving this conviction about value.

The company's intensified focus on digital product innovation, including high-frequency feature releases (for example, introduction of new trading venues, currency accounts, seamless onboarding, generative AI news), suggests it is well-positioned to capture benefits from the broader digital transformation of financial services. This is expected to drive up both user acquisition and long-term retention, which should boost revenue and lifetime customer value.

Read the complete narrative.

Want to know which digital breakthroughs and user trends underpin this tight valuation? The real story includes bold margin moves, revenue evolution, and a profit leap that few expect. Discover the detailed projections and see why consensus is so razor-close to today’s price.

Result: Fair Value of $276.78 (ABOUT RIGHT)

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

However, rising costs and increased price competition could pressure Nordnet's margins, which may challenge the outlook that underpins current analyst optimism.

Find out about the key risks to this Nordnet narrative.

Another View: Discounted Cash Flow Sends a Different Signal

While most see Nordnet as fairly valued at current prices, our DCF model points to a different conclusion. The model estimates fair value at SEK183.37, which is well below the market price. This suggests investors may be risking overpaying unless future growth or margins exceed current forecasts. Which story will the market believe?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nordnet for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 832 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Nordnet Narrative

If you're eager to dig deeper or want to shape the story your own way, you can quickly generate your own Nordnet analysis and insights. Do it your way

A great starting point for your Nordnet research is our analysis highlighting 2 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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