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    Borregaard (OB:BRG) Could Be 15% Undervalued As Capital Markets Day Tests Views

    Simply Wall St·09/18/2026 17:28:49
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    Borregaard (OB:BRG) used its 2026 Capital Markets Day in Oslo to walk investors through its specialisation strategy, global manufacturing footprint, and how management sees future market opportunities across its biochemicals and biomaterials operations.

    Recent price action has been weak, with Borregaard’s share price down about 24.9% year to date and delivering a 1-year total shareholder return decline of 23%. A slightly positive 3-year total shareholder return of about 1% points to only modest long term gains so far.

    Scan beyond Borregaard’s recent share price weakness and compare it with a curated 169 high quality undervalued stocks, which may be pricing in very different expectations to what management set out at Capital Markets Day.

    Borregaard now trades well below both analyst targets and intrinsic estimates, which raises a simple question for investors: Is the price discounting real risk or misreading fair value?

    Most Popular Narrative: 15% Undervalued

    Borregaard closed at NOK147.60, while the most followed narrative anchors fair value at NOK174. That gap frames how investors might read the recent reset in expectations after Capital Markets Day.

    The favorable product mix in BioSolutions, particularly with high-value specialty products, is anticipated to boost overall earnings and contribute to higher net margins. Continuous investment and focus on operational improvements, such as the electrification of biopolymer spray dryers to reduce energy costs, are likely to enhance net margins over time.

    See why 15 investors see Borregaard as 15% undervalued.

    Result: Fair Value of NOK174 (UNDERVALUED)

    Still, that narrative can break if tariffs on Norwegian exports bite harder into Borregaard’s US volumes, or if higher wood and logistics costs continue to squeeze profitability.

    Find out about the key risks to this Borregaard narrative.

    Another View: Borregaard On Earnings Multiples

    The discounted cash flow work-up points to Borregaard trading well below an estimated cash flow value, yet the P/E picture tells a very different story. On earnings, the stock trades on 87x compared with 28.7x for peers and a fair ratio estimate of 43.9x, which implies a rich valuation on current profits. That gap leaves you weighing whether the issue is the earnings base or the DCF assumptions.

    To see how these earnings multiples stack up against cash flow estimates in practice, take a closer look at the valuation breakdown in our detailed workup, starting with See what the numbers say about this price — find out in our valuation breakdown..

    OB:BRG P/E Ratio as at Sep 2026
    OB:BRG P/E Ratio as at Sep 2026

    Next Steps

    If this mix of optimism and concern around Borregaard resonates, do not just watch from the sidelines. Pressure test the full picture by weighing the 2 key rewards and 1 important warning sign.

    Looking for more ideas beyond Borregaard?

    If you stop with Borregaard, you only see a fraction of what the market offers. Cast the net wider and you give yourself more options.

    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.