• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Subsea 7 (OB:SUBC) Joins FTSE All World Index, Is The Stock Still Cheap?

    Simply Wall St·09/22/2026 16:24:52
    Listen to the news

    Index inclusion puts Subsea 7 on more investor screens

    Subsea 7 (OB:SUBC) has been added to the FTSE All-World Index in USD terms, a change that can draw fresh attention from index-linked funds and global investors tracking that benchmark.

    At a share price of NOK323.4, Subsea 7 has logged a 55.48% year-to-date share price return and a 74.06% total shareholder return over the past year, pointing to strong momentum. This comes even though the 30-day share price return is down 4.32% and the 90-day share price return is down 5.66%, with the recent index inclusion likely contributing to renewed buying interest over the past week.

    Scan other index-linked momentum plays by checking the 178 high quality undervalued stocks that combine solid fundamentals with potential pricing gaps.

    The sharp rise in Subsea 7, followed by a softer 30 to 90 day patch, raises a simple tension: Is the index-driven buzz running ahead of the business, or is the valuation still catching up to operations and cash flows?

    Most popular narrative: 8% undervalued

    Subsea 7 last closed at NOK323.4, while the most followed valuation narrative points to a fair value of NOK352.69. This frames the recent index inclusion against a view that the shares trade at a discount based on forecast cash generation and profitability.

    The analysts have a consensus price target of NOK352.69 for Subsea 7 based on their expectations of its future earnings growth, profit margins and other risk factors.

    However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of NOK456.48, and the most bearish reporting a price target of just NOK240.62.

    See why 17 investors see Subsea 7 as 8% undervalued.

    Result: Fair Value of NOK352.69 (UNDERVALUED)

    Still, the Saipem merger review and pressure from tight bidding in markets like Brazil could squeeze Subsea 7's margins and weaken the bullish valuation story.

    Find out about the key risks to this Subsea 7 narrative.

    Another view on Subsea 7’s valuation

    The DCF work suggests Subsea 7 looks cheap, yet the market is not treating it like a bargain across all metrics. On a P/E of 16.5x, the stock trades more richly than the Norwegian Energy Services industry at 7.7x and above its own fair ratio of 14.1x. That gap points to a risk that sentiment, not only cash flow maths, is carrying some of the load. Which signal do you trust more when real money is on the line?

    See what the numbers say about this price in more depth by reviewing our valuation breakdown See what the numbers say about this price — find out in our valuation breakdown.

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

    Next Steps

    Mixed signals around Subsea 7 can either freeze you or focus you. Move quickly to stress test the bullish and cautious angles, then weigh up the 3 key rewards and 1 important warning sign.

    Looking for more ideas beyond Subsea 7?

    If you stop with Subsea 7, you only see one angle. Broaden your watchlist with fresh ideas other investors may be missing right now.

    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.