Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 6.40%, lower than industry average of 6.56%.

Growth Trajectory

Profitability

In the growth phase company makes 16.82% profit on every dollar of sales, higher than industry average of 10.25%.

Profitability Trajectory

Risk Profile

Investors expect at least 8.93% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
291.54B SEK
Equity Value
244.43B SEK
FCF Yield
60.64%
Average ROIC
12.76%
Cost of Capital
8.04%
P/E Ratio
19.68x
Financial MetricMost Recent 12 months (SEK)Previous Year (SEK)
Revenues121.46B SEK122.88B SEK
Operating Income or EBIT21.31B SEK19.34B SEK
Interest Expense2.40B SEK2.55B SEK
Book Value Of Equity87.65B SEK96.92B SEK
Book Value Of Debt50.49B SEK42.76B SEK
Cash and Marketable Securities3.45B SEK4.53B SEK
Number of Shares Outstanding1.25B--
Minority interests75M SEK0 SEK
Current Stock Price247.50 SEK--
Effective Tax Rate26.00%--
Marginal Tax Rate20.60%--

Performance vs Industry

Revenue Growth
-7.71%
-1.16%Company
vs
6.55%Industry
Below Industry
Operating Margin
+7.30%
17.54%Company
vs
10.24%Industry
Above Industry
Sandvik AB (publ) demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
2.25%
Cost of Capital
6.48%
Return on Capital
6.48%
Reinvestment Rate
34.72%
Terminal value represents 64% of total enterprise value, based on 2.25% perpetual growth and 6.48% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 185.83B SEK Add
Present Value (Cash Flow Over Next 10 Years) 105.71B SEK Add
Value of Operating Assets 291.54B SEK Sub-total
Debt 50.49B SEK Subtract
Minority Interests 75.00M SEK Subtract
Cash 3.44B SEK Add
Value of Equity 244.43B SEK Sub-total
Number of Shares 1.25B shares Divisor
Estimated Value per Share (Fair Value) 194.86 SEK Total
Current Market Price 247.50 SEK Reference

Financial Projections

Total FCF Present Value
105.71B SEK
Avg Revenue Growth
4.43%
Avg Operating Margin
16.66%
Avg ROIC
12.76%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue128.52B SEK136.75B SEK145.50B SEK154.82B SEK164.73B SEK173.91B SEK182.15B SEK189.27B SEK195.10B SEK199.49B SEK203.98B SEK
Growth Rate 5.82% 6.40% 6.40% 6.40% 6.40% 5.57% 4.74% 3.91% 3.08% 2.25% 2.25%
PROFITABILITY
Operating Income22.54B SEK23.33B SEK24.47B SEK25.67B SEK26.91B SEK28.41B SEK29.76B SEK30.92B SEK31.88B SEK32.59B SEK33.33B SEK
Operating Margin 17.54% 17.06% 16.82% 16.58% 16.34% 16.34% 16.34% 16.34% 16.34% 16.34% 16.34%
EBIT (1-tax)16.68B SEK17.26B SEK18.11B SEK18.99B SEK19.92B SEK21.33B SEK22.66B SEK23.89B SEK24.97B SEK25.88B SEK26.46B SEK
CASH FLOW
Reinvestment4.25B SEK4.52B SEK4.81B SEK5.12B SEK4.74B SEK4.18B SEK3.61B SEK2.96B SEK2.23B SEK2.28B SEK9.18B SEK
Free Cash Flow12.43B SEK12.74B SEK13.30B SEK13.87B SEK15.17B SEK17.14B SEK19.05B SEK20.92B SEK22.74B SEK23.60B SEK17.27B SEK
Terminal Value--------------------408.43B SEK
Present Value11.41B SEK10.73B SEK10.28B SEK9.85B SEK9.89B SEK10.30B SEK10.60B SEK10.84B SEK11.01B SEK10.73B SEK—
EFFICIENCY
ROIC 12.38% 12.42% 12.62% 12.81% 12.98% 13.49% 13.96% 14.39% 14.78% 15.12% 6.48%
Cost of Capital 8.93% 8.93% 8.93% 8.93% 8.93% 8.44% 7.95% 7.46% 6.97% 6.48% 6.48%
Sales/Capital 1.93x 1.93x 1.93x 1.93x 1.93x 1.96x 1.96x 1.96x 1.96x 1.96x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (krB)
Reinvestment (krB)