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    Is Veidekke (OB:VEI) Cheap Following Its New OBOS Housing Project Deal?

    Simply Wall St·07/18/2026 05:26:12
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    Veidekke (OB:VEI) stock is drawing attention after the company agreed a 50/50 partnership with OBOS to develop the Kristiansholm residential project in Bergen, positioning Veidekke as both co-owner and design build contractor.

    See our latest analysis for Veidekke.

    At the current share price of NOK186.6, Veidekke’s 1 month share price return of 1.86% and year to date share price return of 6.51% contrast with a softer 3 month share price return that declined 2.10%, while the 1 year total shareholder return of 20.76% and 5 year total shareholder return of 126.50% point to stronger longer term momentum.

    If this kind of project pipeline has your attention and you want to broaden your watchlist, now is a good time to uncover 33 power grid technology and infrastructure stocks

    Veidekke now has a sizeable urban housing project on its plate and a long record in Nordic construction. The real question for you is whether that combination of scale and history is already fully reflected in the share price.

    Preferred P/E of 15.9x: Is it justified?

    Veidekke is trading on a P/E of 15.9x, which sits slightly above several reference points and gives you a clear marker for how the market is pricing its earnings today.

    The P/E ratio compares the current share price with earnings per share and is a common tool for construction and infrastructure companies like Veidekke, where investors often focus on earnings power through the cycle.

    Here, the picture is mixed. On one hand, Veidekke is described as trading at a 36.3% discount to an SWS DCF fair value estimate of NOK293.13 per share, while the current share price is NOK186.6. That implies the SWS DCF model points to a materially higher value based on projected cash flows. On the other hand, the P/E of 15.9x is described as slightly expensive compared with an estimated fair P/E of 15.5x, the peer average of 14.7x, and the wider European construction industry at 15.3x.

    Those comparisons suggest the market is placing a premium P/E multiple on Veidekke relative to peers and to the fair ratio level the market could move towards, even while the SWS DCF model output indicates the share price is below its modelled cash flow value.

    Explore the SWS fair ratio for Veidekke

    Result: Price-to-earnings of 15.9x (OVERVALUED).

    However, Veidekke’s premium P/E and reliance on large construction and infrastructure projects could become pressure points if project margins tighten or new work slows.

    Find out about the key risks to this Veidekke narrative.

    Another view on Veidekke’s value

    The SWS DCF model paints a different picture for Veidekke, suggesting the stock is trading at a 36.3% discount to an estimated fair value of NOK293.13 per share, compared with the current NOK186.6. If earnings are priced a bit rich, are cash flows telling you a different story?

    Look into how the SWS DCF model arrives at its fair value.

    VEI Discounted Cash Flow as at Jul 2026
    VEI Discounted Cash Flow as at Jul 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Veidekke for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 223 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    If this mix of potential upside and real risks around Veidekke has you thinking, now is the moment to weigh the data for yourself and see both sides clearly with 3 key rewards and 1 important warning sign

    Looking for more investment ideas beyond Veidekke?

    If Veidekke has sharpened your focus, do not stop here. Broadening your horizon across other quality stocks can help you build a more resilient portfolio.

    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.