Veidekke (OB:VEI) Could Be 8% Undervalued Following NOK 212 Million Contract Win

Veidekke (OB:VEI) stock is in focus after the company reported new design and build contracts from K2 Bolig in Stavanger, covering the Krossen and Utsikten residential projects worth NOK 212 million.

Veidekke shares have picked up momentum over 2026, with a 30 day share price return of 11.76% and a year to date share price return of 19.29%. Total shareholder return sits at 39.68% over one year and over 150% across three and five years.

Compare Veidekke's recent contract win with other construction and infrastructure companies that screen well on balance sheet strength and fundamentals using our list of solid balance sheet and fundamentals (428 results).

After Veidekke's strong run and new Stavanger contracts, some investors may feel pressure to act quickly. Others will prefer to wait for a cooler entry. The next step is to see what the valuation actually says.

Price-to-Earnings of 16.8x: Is it justified?

Veidekke currently trades on a P/E of 16.8x, which prices the stock above both peer averages even though the SWS DCF model suggests the shares trade below estimated fair value.

The P/E ratio compares Veidekke's share price to its earnings per share and is a common way investors assess how much they are paying for current earnings. For a construction and infrastructure company, this helps you gauge how the market is valuing its profit stream relative to others in the sector.

At 16.8x, Veidekke trades at a higher P/E than the peer average of 15.9x and the European construction industry average of 15.5x. It is also above the estimated fair P/E of 15x from the SWS fair ratio work. This signals that the market is attaching a richer earnings multiple than that historical relationship suggests could be justified over time.

Explore the SWS fair ratio for Veidekke.

Result: Price-to-Earnings of 16.8x (OVERVALUED)

However, Veidekke still faces risks such as project execution setbacks or weaker construction demand, which could challenge the current optimism around the stock.

Find out about the key risks to this Veidekke narrative.

Another view on Veidekke's value

The P/E suggests Veidekke is priced on the expensive side, yet the SWS DCF model points the other way. At NOK 209 the stock is indicated as trading below an estimated future cash flow value of NOK 226.65, which frames it as undervalued. Which signal do you trust more for your next move?

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

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 262 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

Given the mix of optimism and caution around Veidekke, this is a good moment to check the data yourself and decide where you stand. To act quickly yet stay grounded in the numbers, review the balance of risks and rewards through the 3 key rewards and 1 important warning sign.

Looking for more Veidekke sized opportunities?

If Veidekke has caught your attention, do not stop here. The broader market holds plenty of other stocks that could fit your risk and return preferences.

• Capture potential mispricing by scanning a list of stocks that screen as high quality and currently undervalued through our 262 high quality undervalued stocks.
• Prioritise resilience by filtering for 308 resilient stocks with low risk scores that score well on stability and downside protection so you are not caught off guard.
• Spot early opportunities by checking 613 high quality undiscovered gems before they move onto everyone else's radar.

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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