Elekta (OM:EKTA B): Valuation Insights Following New Clinical Evidence Supporting Unity Platform’s Patient Benefits

Elekta (OM:EKTA B) is in focus after new results from the international MOMENTUM study showed its Elekta Unity platform delivers lasting quality of life improvements for men facing localized prostate cancer. The data underscores real-world patient benefits.

See our latest analysis for Elekta.

Over the past year, Elekta’s share price return has been under pressure, sliding 21.3% year-to-date and delivering a one-year total shareholder return of -27.3%. While short-term price momentum has picked up recently, long-term performance suggests the market is still waiting for a sustained turnaround despite encouraging clinical news such as the recent MOMENTUM study results.

If medical breakthroughs and strong patient benefits stand out to you, this is a great time to discover more companies shaping the future of healthcare with our See the full list for free.

With shares still trading well below analyst targets and recent advances boosting Elekta’s long-term outlook, investors now face a key question: is Elekta undervalued at current levels, or is future growth already reflected in the price?

Most Popular Narrative: 9.5% Undervalued

Elekta’s consensus narrative now places its fair value about 9.5% above the last close. This sets up a striking contrast with the stock’s current subdued price, and raises the stakes for investors hoping for a near-term re-rating.

Expansion of high-margin service and software recurring revenue, evidenced by consistent 4% service growth and increasing software traction, adds predictable cash flow and supports higher net margins as more customers attach ongoing digital and planning solutions to hardware sales.

Read the complete narrative.

Wondering what’s behind this valuation call? The consensus narrative relies on rising service revenues, bold profit margin recovery, and an aggressive earnings ramp. The real surprise: it all hinges on one vital business shift you’ll only discover in the full narrative.

Result: Fair Value of $53.79 (UNDERVALUED)

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

However, persistent FX and tariff headwinds, as well as possible delays in China’s recovery, could challenge Elekta’s outlook and test investor patience.

Find out about the key risks to this Elekta narrative.

Another View: Market Ratios Signal Expensive Stock

While Elekta’s fair value estimate suggests upside, looking at market ratios tells a different story. The price-to-earnings ratio stands at 67.9x, far above the European industry average of 28.8x and the fair ratio of 38.1x. This wide gap increases valuation risk if market sentiment turns cautious. Will the market keep paying such a premium?

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

Build Your Own Elekta Narrative

If you see the story differently or want to uncover your own insights, you can easily build a tailored analysis in just a few minutes. Do it your way.

A great starting point for your Elekta research is our analysis highlighting 2 key rewards and 4 important warning signs 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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