Valmet Oyj (HLSE:VALMT) Lands A €100 Million Pulp Mill Order, Is It Still Undervalued?

Valmet Oyj (HLSE:VALMT) has secured a contract exceeding €100 million to supply core process technology for Century Sunshine's new Rizhao pulp mill in Shandong, China, with delivery booked in second quarter 2026 orders.

Recent trading has been choppy for Valmet Oyj. The share price is now €27.1 after a 1-day share price return of 2.11%. However, the 30-day share price return has declined 4.10%, and year-to-date share price performance is down 4.17%, while the 3-year total shareholder return of 51.86% points to stronger earlier momentum than over the past year.

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So is Valmet Oyj’s recent pullback simply sentiment cooling after earlier gains, or does the current price better reflect what this pulp and paper equipment business is actually earning today?

Most Popular Narrative: 14% Undervalued

On the most followed narrative, Valmet Oyj screens as undervalued, with an estimated fair value of about €31.47 against the current €27.1 share price. That view leans heavily on cost savings already visible in the accounts and a business mix that is shifting toward higher margin and more recurring activities.

The implementation of Valmet Oyj's new operating model, which simplifies structure and fosters faster decision-making and local accountability, is now supported by about €80 million of annual SG&A savings compared with 2024 and a reduction of SG&A to roughly 17% of net sales, which continues to underpin group EBITA margins and earnings.

See why 36 investors see Valmet Oyj as 14% undervalued.

Result: Fair Value of €31.47 (UNDERVALUED)

Still, the bullish Valmet Oyj story can crack if high margin services in Biomaterial Solutions and Services stay weak, or if the €100 million cost program underdelivers.

Find out about the key risks to this Valmet Oyj narrative.

Next Steps

If this all sounds optimistic on Valmet Oyj, stress test the story against your own risk tolerance and time horizon, and then review the 5 key rewards.

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