Essity AB (publ)

OM:ESSITY B Stock Report

Market Cap: SEK 213.7b

Essity Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 ESSITY B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ESSITY B (SEK305.2) is trading below our estimate of fair value (SEK638.6)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ESSITY B 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/Revenue1.7x
Enterprise Value/EBITDA9.9x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does ESSITY B's PE Ratio compare to its peers?

The above table shows the PE ratio for ESSITY B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.8x
8113 Unicharm
31.5x8.2%JP¥2.8t
CHD Church & Dwight
30.9x6.6%US$24.5b
CLX Clorox
63.9x21.3%US$16.7b
HEN3 Henkel KGaA
24.9x10.4%€31.0b
ESSITY B Essity
21.1x11.3%SEK 210.4b

Price-To-Earnings vs Peers: ESSITY B is good value based on its Price-To-Earnings Ratio (21.4x) compared to the peer average (37.7x).

Price to Earnings Ratio vs Industry

How does ESSITY B's PE Ratio compare vs other companies in the Global Household Products Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.1%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ESSITY B is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the Global Household Products industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is ESSITY B'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.

ESSITY B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.4x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: ESSITY B is expensive based on its Price-To-Earnings Ratio (21.4x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

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 ESSITY B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 305.20
SEK 307.38
+0.7%
8.1%SEK 340.00SEK 265.00n/a13
Jul ’25SEK 275.90
SEK 292.71
+6.1%
8.1%SEK 330.00SEK 250.00n/a14
Jun ’25SEK 269.50
SEK 292.93
+8.7%
8.6%SEK 330.00SEK 243.00n/a14
May ’25SEK 274.60
SEK 290.43
+5.8%
9.9%SEK 330.00SEK 235.00n/a14
Apr ’25SEK 254.20
SEK 278.64
+9.6%
9.6%SEK 325.00SEK 235.00n/a11
Mar ’25SEK 242.20
SEK 276.64
+14.2%
10.0%SEK 325.00SEK 235.00n/a11
Feb ’25SEK 242.50
SEK 275.80
+13.7%
10.5%SEK 325.00SEK 235.00n/a10
Jan ’25SEK 250.00
SEK 289.08
+15.6%
10.4%SEK 336.00SEK 240.00n/a13
Dec ’24SEK 261.90
SEK 291.85
+11.4%
8.9%SEK 336.00SEK 240.00n/a13
Nov ’24SEK 256.80
SEK 294.21
+14.6%
9.4%SEK 336.00SEK 235.00n/a14
Oct ’24SEK 235.90
SEK 289.67
+22.8%
10.1%SEK 336.00SEK 235.00n/a15
Sep ’24SEK 253.30
SEK 297.31
+17.4%
10.5%SEK 342.00SEK 235.00n/a16
Aug ’24SEK 259.60
SEK 298.38
+14.9%
9.9%SEK 342.00SEK 250.00SEK 300.3016
Jul ’24SEK 287.10
SEK 319.88
+11.4%
10.7%SEK 363.00SEK 260.00SEK 275.9016
Jun ’24SEK 291.00
SEK 321.24
+10.4%
11.4%SEK 370.00SEK 255.00SEK 269.5017
May ’24SEK 310.70
SEK 316.00
+1.7%
10.9%SEK 363.00SEK 255.00SEK 274.6016
Apr ’24SEK 296.40
SEK 304.44
+2.7%
10.4%SEK 360.00SEK 236.00SEK 254.2016
Mar ’24SEK 279.90
SEK 297.28
+6.2%
11.0%SEK 360.00SEK 236.00SEK 242.2018
Feb ’24SEK 269.30
SEK 292.00
+8.4%
11.1%SEK 340.00SEK 232.00SEK 242.5018
Jan ’24SEK 273.30
SEK 280.83
+2.8%
9.9%SEK 340.00SEK 232.00SEK 250.0018
Dec ’23SEK 260.90
SEK 272.44
+4.4%
8.8%SEK 320.00SEK 232.00SEK 261.9018
Nov ’23SEK 233.30
SEK 264.67
+13.4%
10.0%SEK 320.00SEK 220.00SEK 256.8018
Oct ’23SEK 220.80
SEK 274.44
+24.3%
13.6%SEK 341.00SEK 210.00SEK 235.9018
Sep ’23SEK 229.50
SEK 279.11
+21.6%
11.7%SEK 341.00SEK 232.00SEK 253.3018
Aug ’23SEK 258.60
SEK 281.88
+9.0%
11.2%SEK 341.00SEK 236.00SEK 259.6017

Analyst Forecast: Target price is less than 20% higher than the current share price.

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