SSAB (OM:SSAB A) Valuation in Focus After Major Fossil-Free Steel Deal with Vattenfall

SSAB (OM:SSAB A) just announced an agreement to deliver 120 tonnes of fossil-free steel for Vattenfall’s new dam gate project, using HYBRIT technology. This move expands their partnership and demonstrates practical applications for sustainable steel.

See our latest analysis for SSAB.

SSAB’s shares have gained solid ground recently, with a 33% year-to-date price return and a robust 23.2% one-year total shareholder return. The HYBRIT partnership is at the forefront of the move toward sustainable infrastructure, helping to build positive momentum. Short-term fluctuations aside, the longer-term story has rewarded patient investors and suggested further growth potential as confidence in green steel deepens.

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SSAB’s stock has rallied, backed by healthy earnings and a growing lead in sustainable steel. With shares trading at a discount to analyst targets, the question remains: is there still untapped upside, or has the market already factored in future growth?

Most Popular Narrative: 13.6% Undervalued

The most widely followed narrative sets SSAB's fair value well above its last close, suggesting the market may be underestimating the company's future prospects. This snapshot captures optimism, even though the current price is significantly below the narrative's projected valuation.

SSAB's clear leadership in fossil-free steel (SSAB Zero, HYBRIT initiative) is attracting strong long-term demand from major OEMs (for example, the 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 trend should support both higher revenue growth and margin expansion over the next decade.

Read the complete narrative.

Curious what financial leaps underpin this bullish narrative? One critical assumption is future margins and revenue growth that most investors wouldn’t expect from a traditional steelmaker. Want to know what forecasts could make SSAB’s valuation surpass its current price? Read the full narrative and get the details behind this surprising target.

Result: Fair Value of $69.88 (UNDERVALUED)

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

However, persistent global steel overcapacity and further delays to SSAB’s Luleå transition could undermine both earnings growth and the bullish outlook.

Find out about the key risks to this SSAB narrative.

Build Your Own SSAB Narrative

If you see the numbers differently or want to dig deeper into your own findings, you can create your own narrative in just a few minutes. 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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