Assessing SSAB (OM:SSAB A) Valuation Following Strong Investor Demand for Its First Green Bond Issue

SSAB (OM:SSAB A) has drawn attention with the successful launch of its first green bonds, which were quickly oversubscribed. This result highlights investor confidence in the company’s low-carbon strategy and supports funding for eco-friendly steel projects.

See our latest analysis for SSAB.

SSAB’s standout performance this year, with a 33.8% year-to-date share price return and 21.9% total shareholder return over the past 12 months, has been driven by positive momentum and renewed optimism following its green bond launch and growing sustainability focus. While the market has reacted positively to strategic initiatives, investors are watching closely to see if that momentum can be sustained for the long haul.

If sustainability trends in steel have you thinking bigger, this is a great time to broaden your horizons and discover fast growing stocks with high insider ownership

With green ambitions fueling recent gains and the share price still trading below analyst targets, the question now is whether SSAB remains undervalued or if markets are already baking in all prospective growth. Could this be a genuine buying opportunity?

Most Popular Narrative: 13% Undervalued

With SSAB’s fair value pegged at SEK69.88 versus the last close of SEK60.66, the most widely followed narrative views the shares as trading at a notable discount. This pricing gap has attracted attention, especially as investors weigh the long-term impact of green steel projects and growing policy tailwinds.

SSAB's clear leadership in fossil-free steel (SSAB Zero, HYBRIT initiative) is attracting strong long-term demand from major OEMs (e.g., Volvo Cars partnership) and enabling premium pricing for advanced high-strength and sustainable steels. As decarbonization policies expand and "green steel" procurement accelerates among automakers and infrastructure players, this should support both higher revenue growth and margin expansion over the next decade.

Read the complete narrative.

Think this price gap is just about big sustainability headlines? Think again. The valuation hinges on projected margin gains and heightened pricing power that could surprise traditional value hunters. The real story is found inside the next set of forecasts. Are you ready to uncover what’s driving this bold price target?

Result: Fair Value of SEK69.88 (UNDERVALUED)

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

However, project delays and Europe's lingering steel overcapacity could still put pressure on SSAB's margins and challenge the current undervaluation story.

Find out about the key risks to this SSAB narrative.

Build Your Own SSAB Narrative

If you have your own take or want to dig deeper into the numbers, it takes less than three minutes to craft your own view, your way Do it your way

A great starting point for your SSAB research is our analysis highlighting 3 key rewards and 2 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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