EQT (OM:EQT) caught investor attention after its recent market move, with shares showing moderate shifts across the month and quarter. This opens up new discussions about how EQT is currently valued in the market.
See our latest analysis for EQT.
This year, EQT’s share price showed steady progress, up 8.3% year-to-date, while its one-year total shareholder return climbed to an impressive 15.5%. Momentum has been building, which suggests renewed investor confidence as market sentiment improves.
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Given these recent shifts, the key question remains: is EQT still undervalued enough to warrant new investment? Alternatively, has the market already factored in the company’s growth prospects, leaving little room for further upside?
With EQT’s most popular narrative estimating a fair value above the recent closing price of SEK 335, the market may be discounting stronger long-term growth potential than currently reflected. This section highlights the narrative’s core driver and invites you to explore the full valuation assumptions.
The firm’s global diversification, especially its push into fast-growing Asian markets (e.g., India, Japan) and the U.S., positions it to benefit as more capital is funneled into private assets in these regions. This supports sustained AUM growth and higher future earnings.
Read the complete narrative.
Curious about what propels EQT’s target valuation far beyond the current price? The story hinges on a massive expansion plan, ambitious margin forecasts, and bold earnings projections. Want to discover which growth bets could make or break this outlook? Unlock the full details and see the financial reasoning behind this bullish case.
Result: Fair Value of $372.65 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, slower fundraising growth or execution challenges from expansion could quickly dampen EQT’s bullish outlook if these issues are not managed successfully.
Find out about the key risks to this EQT narrative.
Looking at valuation through the lens of the price-to-earnings ratio offers a different perspective. EQT trades at 42.5x earnings, which is much higher than the Swedish industry average of 25.3x and the fair ratio of 30.9x. This steep premium suggests greater valuation risk if market expectations change. Is this optimism justified, or are investors paying too much for growth?