Valmet Oyj (HLSE:VALMT) Starts Breakup Review After Q2 Results, Is It Still A Bargain?
Valmet Oyj (HLSE:VALMT) has attracted fresh attention after launching a review on whether to separate its Biomaterial Solutions and Services and Process Performance Solutions units into two listed companies, alongside releasing its second quarter 2026 results.
See our latest analysis for Valmet Oyj.
Those announcements landed after a sharp shift in sentiment, with Valmet Oyj’s 30 day share price return of 26.85% and 90 day share price return of 20.96% contrasting with a year to date share price decline of 4.10% and a 1 year total shareholder return decline of 9.22%. However, the 3 year total shareholder return of 36.09% shows that longer term holders have still seen gains.
If you are weighing up Valmet’s potential reshaping, it can also be useful to scan for other industrial and infrastructure opportunities, including 37 power grid technology and infrastructure stocks
So is Valmet Oyj’s recent jump mainly about a stronger looking business after its review and earnings update, or about sentiment snapping back after a weak year to date and 1 year return? And how does that feed into value today?
Most Popular Narrative: 12.5% Undervalued
Valmet Oyj’s most followed valuation story points to a fair value of €31, compared with a last close of €27.12, which suggests the recent share price rebound has not fully closed the gap to that narrative fair value.
Valmet's sharpened strategy to lead the shift to advanced circularity and resource efficiency positions it as a prime beneficiary of the accelerating global move towards decarbonization, carbon capture, and zero-waste production. This is likely to translate to outsized long-term order inflows and premium pricing for automation and process solutions, driving above-cycle revenue growth and structurally higher margins.
Want to see what is baked into that €31 valuation for Valmet Oyj? The narrative leans on faster revenue expansion, richer margins and a future earnings multiple that sits below many peers. Curious which specific growth and profitability assumptions need to hold for that story to play out.
Result: Fair Value of €31 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors still need to weigh the risk that slower digital adoption or weaker capital spending in pulp and paper projects could challenge the otherwise upbeat narrative around Valmet Oyj.
Find out about the key risks to this Valmet Oyj narrative.
Next Steps
With mixed sentiment around Valmet Oyj, it makes sense to look at the full picture of both concerns and bright spots, then decide where you stand. To see how those cross currents line up in the data, review the 5 key rewards and 1 important warning sign
Looking for more investment ideas beyond Valmet Oyj?
If you like Valmet Oyj but want a wider watchlist, now is the time to hunt for other quality ideas before the next wave of interest arrives.
- Target potential mispricings by scanning companies that look compelling on quality and value using the 255 high quality undervalued stocks.
- Maintain an income focus by reviewing companies with robust payouts and yields through the 439 dividend fortresses.
- Emphasize capital preservation by filtering for companies with resilient financial profiles using the 302 resilient stocks with low risk scores.
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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