Simply Wall St
4 min read
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If you are wondering whether ASSA ABLOY is fairly priced or offering value right now, it helps to start with how the market has treated the stock recently and what that might mean for you.
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ASSA ABLOY’s share price recently closed at SEK 374.8, with returns of 2.8% over the last 7 days, 5.6% over the last 30 days, 5.6% year to date, 14.3% over 1 year, 63.0% over 3 years, and 94.8% over 5 years.
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These returns sit against a backdrop of ongoing interest in security and access solutions globally, which keeps ASSA ABLOY on many investors’ watchlists. Broader sector developments and corporate announcements around contracts, product launches or partnerships often influence how investors think about the stock’s risk and growth profile.
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On our valuation checks, ASSA ABLOY currently scores 4 out of 6. This suggests several indicators line up as potentially supportive for value. We will break that score down using different valuation approaches before finishing with a way to tie those methods together more effectively.
A Discounted Cash Flow, or DCF, model looks at the cash ASSA ABLOY is expected to generate in the future, then discounts those cash flows back to today to estimate what the business might be worth per share right now.
ASSA ABLOY’s latest twelve month free cash flow is SEK 18,769.4m. Using a 2 Stage Free Cash Flow to Equity model, analysts provide explicit free cash flow estimates out to 2030, with SEK 27,424m projected for that year, and Simply Wall St extends these projections further based on the earlier trend. Each of these future cash flows is discounted back to today in SEK to reflect the time value of money and risk.
Adding all of those discounted cash flows together gives an estimated intrinsic value of SEK 478.28 per share. Compared with the recent share price of SEK 374.80, this DCF output suggests the stock is about 21.6% undervalued under this set of assumptions.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests ASSA ABLOY is undervalued by 21.6%. Track this in your watchlist or portfolio, or discover 873 more undervalued stocks based on cash flows.
For a profitable company like ASSA ABLOY, the P/E ratio is a useful shorthand for what the market is paying for each unit of earnings. It helps you quickly compare how the stock is priced relative to other businesses that also generate profits.