Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 4.79%, higher than industry average of 3.17%.

Growth Trajectory

Profitability

In the growth phase company makes 22.16% profit on every dollar of sales, higher than industry average of 6.99%.

Profitability Trajectory

Risk Profile

Investors expect at least 3.75% 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
81.88B SEK
Equity Value
81.41B SEK
FCF Yield
48.72%
Average ROIC
4.39%
Cost of Capital
4.74%
P/E Ratio
20.85x
Financial MetricMost Recent 12 months (SEK)Previous Year (SEK)
Revenues20.92B SEK20.23B SEK
Operating Income or EBIT5.29B SEK5.07B SEK
Interest Expense108M SEK550M SEK
Book Value Of Equity103.57B SEK104.03B SEK
Book Value Of Debt544M SEK13.73B SEK
Cash and Marketable Securities74M SEK1.33B SEK
Number of Shares Outstanding702.34M--
Minority interests0 SEK0 SEK
Current Stock Price125.80 SEK--
Effective Tax Rate20.00%--
Marginal Tax Rate20.60%--

Performance vs Industry

Revenue Growth
+0.25%
3.42%Company
vs
3.17%Industry
At Industry Level
Operating Margin
+18.32%
25.30%Company
vs
6.98%Industry
Above Industry
Svenska Cellulosa Aktiebolaget SCA (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 61% of total enterprise value, based on 2.25% perpetual growth and 6.48% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 50.17B SEK Add
Present Value (Cash Flow Over Next 10 Years) 31.71B SEK Add
Value of Operating Assets 81.88B SEK Sub-total
Debt 544.00M SEK Subtract
Minority Interests — Subtract
Cash 74.00M SEK Add
Value of Equity 81.41B SEK Sub-total
Number of Shares 702.34M shares Divisor
Estimated Value per Share (Fair Value) 115.92 SEK Total
Current Market Price 125.80 SEK Reference

Financial Projections

Total FCF Present Value
31.71B SEK
Avg Revenue Growth
3.58%
Avg Operating Margin
21.46%
Avg ROIC
4.39%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue22.02B SEK23.08B SEK24.18B SEK25.34B SEK26.55B SEK27.69B SEK28.74B SEK29.67B SEK30.49B SEK31.18B SEK31.88B SEK
Growth Rate 5.26% 4.78% 4.78% 4.78% 4.78% 4.28% 3.77% 3.26% 2.75% 2.25% 2.25%
PROFITABILITY
Operating Income5.57B SEK5.35B SEK5.36B SEK5.35B SEK5.33B SEK5.55B SEK5.76B SEK5.95B SEK6.12B SEK6.25B SEK6.39B SEK
Operating Margin 25.30% 23.21% 22.16% 21.11% 20.07% 20.07% 20.07% 20.07% 20.07% 20.07% 20.07%
EBIT (1-tax)4.45B SEK4.28B SEK4.28B SEK4.28B SEK4.26B SEK4.44B SEK4.60B SEK4.74B SEK4.86B SEK4.96B SEK5.08B SEK
CASH FLOW
Reinvestment702.50M SEK736.14M SEK771.39M SEK808.33M SEK757.23M SEK422.32M SEK379.29M SEK330.78M SEK277.33M SEK283.57M SEK1.76B SEK
Free Cash Flow3.75B SEK3.54B SEK3.51B SEK3.47B SEK3.50B SEK4.01B SEK4.22B SEK4.41B SEK4.58B SEK4.68B SEK3.31B SEK
Terminal Value--------------------78.41B SEK
Present Value3.62B SEK3.29B SEK3.14B SEK2.99B SEK2.91B SEK3.20B SEK3.21B SEK3.18B SEK3.12B SEK2.99B SEK—
EFFICIENCY
ROIC 4.28% 4.09% 4.06% 4.02% 3.98% 4.11% 4.25% 4.36% 4.46% 4.54% 6.48%
Cost of Capital 3.75% 3.75% 3.75% 3.75% 3.75% 4.29% 4.84% 5.38% 5.93% 6.48% 6.48%
Sales/Capital 1.50x 1.50x 1.50x 1.50x 1.50x 2.47x 2.47x 2.47x 2.47x 2.47x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (krB)
Reinvestment (krB)