EQT (OM:EQT) Stock Still Looks Undervalued Even After A 48% Rise
EQT stock is coming off a mixed share price record, with the price up about 48.1% over three years but down over the past year, while a low overall value score contrasts with an intrinsic value estimate that suggests the shares trade at a discount to that model. At the same time, market based multiples look roughly in line with peers, so investors are getting very different signals on what EQT is actually worth.
- EQT has returned about 48.1% over the past three years, which puts recent short term weakness in the context of a stronger multi year gain.
- The recent combination with Coller Capital and activity in real estate and sports assets can support expectations for future fee and investment income, while complex deal making and execution risk on large platforms may weigh on how much value investors are willing to ascribe today.
- On Simply Wall St’s broader checks, EQT scores 2 out of 6 for value. This points to a stock that leans expensive overall, even though the Excess Returns intrinsic value estimate suggests roughly a 24% discount.
The issue now is whether EQT’s current price near €322.80 already reflects its expanded private markets platform, or whether the intrinsic value estimate indicates there is still meaningful upside left in the shares.
Capitalize on the mixed signals around EQT by comparing it with 258 high quality undervalued stocks, which also pairs stronger fundamentals with prices that may not fully reflect their underlying business quality.Is EQT Still Cheap on Excess Returns?
The Excess Returns model looks at what EQT can earn on its equity above its own cost of capital and then builds an intrinsic value from those excess profits. For EQT, the model uses a Book Value of SEK6.61 per share and a Stable EPS of SEK1.74 per share, with the latter based on weighted future Return on Equity estimates from 5 analysts. The implied Cost of Equity is SEK0.51 per share and the resulting Excess Return is SEK1.22 per share, supported by an average Return on Equity of 20.97%. Stable Book Value is put at SEK8.28 per share, based on forecasts from 2 analysts.
Combined, these inputs lead the Excess Returns model to an intrinsic value estimate of about SEK425 per share, compared with the recent EQT share price around SEK323, which implies the stock is roughly 24.0% undervalued. Because the Coller Capital combination has lifted EQT’s private markets footprint, it helps explain why the model attributes more value to future excess returns than the current market price does.
On this Excess Returns framework, EQT stock screens as undervalued relative to what its projected profitability on equity suggests.
Our Excess Returns analysis suggests EQT is undervalued by 24.0%. Track this in your watchlist or portfolio, or discover 258 more high quality undervalued stocks.
Is EQT Fairly Priced on Earnings?
P/E is often the go to multiple for a company like EQT, where earnings power is a key focus for investors looking at fee based and investment income streams.
EQT currently trades on a P/E of about 32.4x, which is higher than the Capital Markets industry average of roughly 17.6x and above the peer group average of about 13.8x. The Fair P/E Ratio from Simply Wall St’s model is 31.2x, based on EQT’s earnings profile, risk and sector. This is only slightly below the current multiple and points to a stock that carries a premium to the wider sector, but where most of that premium is already justified by the model’s inputs rather than looking extreme.
On this framework, EQT’s P/E suggests investors are paying a full but not excessive price relative to its earnings outlook and industry position.
Overall, EQT looks roughly fairly valued on its P/E multiple compared with what the tailored Fair P/E Ratio implies.
See what the numbers say about this price — find out in our valuation breakdown.
The EQT Narrative: What Would Justify Today's Price?
Simply Wall St Narratives pick up where this EQT valuation puzzle leaves off by spelling out which future paths for growth, margins and earnings would need to hold for EQT's stock to be worth materially more or less than today's price. Each narrative ties a fair value estimate to a particular story about EQT's potential catalysts and risks, so you can track over time which version of events appears to be unfolding on the Community page.
One of the top community narratives on EQT: 5% undervalued
"Competition for capital within private markets is set to intensify due to slower industry-wide fundraising, increased manager consolidation, and limited sources of new client inflows…"
Read one of the top narratives on EQT
Do you think there's more to the story for EQT? Head over to our Community to see what others are saying!
The Bottom Line
For EQT, the Excess Returns intrinsic value estimate points to undervaluation, while the P/E work suggests the stock is priced about right relative to sector peers and its tailored fair multiple. That split reflects different focus points. The intrinsic value view leans on what EQT may earn on its equity over time, while the market multiple view is more about how investors currently rate its growth profile and risk compared with other capital markets stocks. With broader checks still weak on value, the key question is whether EQT can execute on its expanded platform without eroding returns so that any perceived discount is an opportunity rather than a value trap.
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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