Sandvik (SAND.ST)
Industrials · Nasdaq Stockholm · Europe
Fundamentals
Valuation and ratings
Sandvik trades at kr371.00, which is 54% above the kr171.25 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 61 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 33.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Sandvik
Sandvik AB (publ), an engineering company, provides products and solutions for mining and rock excavation, metal cutting, and materials technology worldwide. The company offers mining and rock excavation equipment, including drill rigs and bolters, underground loaders and trucks, mechanical cutting equipment, rock tools and rock drills, and mining automation; rock processing equipment, such as crushers, screens, hydraulic breakers, demolition tools, and breaker booms. It provides cutting tools and tooling systems, and digital solutions and software; metal powder for additive manufacturing, and products made from controlled expansion alloys; and tungsten powders, as well as recycling services of secondary tungsten raw materials. It serves aerospace, automotive, mining, general engineering, infrastructure, and other industries. Sandvik AB (publ) was founded in 1862 and is headquartered in Stockholm, Sweden.
SAND.ST passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Sandvik (SAND.ST) undervalued?
Against our discounted cash flow estimate of kr171.25, SAND.ST at kr371.00 is 54% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is SAND.ST's P/E ratio?
SAND.ST trades at 33.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.