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Is Kongsberg Gruppen (OB:KOG) Undervalued As Earnings And Its Order Backlog Lift Interest?

Simply Wall St · 2d ago

What the latest earnings event means for Kongsberg Gruppen stock

Kongsberg Gruppen (OB:KOG) is back in focus after its Q2 2026 earnings call, which highlighted strong quarterly revenues, a record order backlog, and the recently announced acquisition of Zone 5.

The earnings update pointed to NOK 9,887 million in second quarter revenue and a sizeable order book supported by Joint Strike Missile contracts, with management emphasizing Zone 5 as a potential future revenue contributor.

See our latest analysis for Kongsberg Gruppen.

Despite the upbeat Q2 2026 headlines, Kongsberg Gruppen’s recent share price momentum has cooled. The stock is down 13.66% over the past week and 29.67% over the past 90 days, even as the 1 year total shareholder return sits at 6.90% and the 5 year total shareholder return is very large.

If the Q2 news has you reassessing your watchlist, this could be a useful moment to check out 34 power grid technology and infrastructure stocks

After a sharp pullback in Kongsberg Gruppen despite a record order backlog and the Zone 5 deal, the key issue now is price rather than headlines. The question is whether the current valuation still leaves enough potential upside to justify the risks.

Most Popular Narrative: 49.6% Undervalued

Compared to Kongsberg Gruppen’s last close at NOK279.30, the most followed fair value narrative of NOK554 points to a large valuation gap that rests on ambitious growth and margin assumptions.

The bullish analysts are assuming Kongsberg Gruppen's revenue will grow by 47.4% annually over the next 3 years.

The bullish analysts assume that profit margins will increase from 14.3% today to 18.4% in 3 years time.

Read the complete narrative.

Want to see what kind of earnings power sits behind that valuation jump? The core of this narrative is compounding revenue, rising margins, and a richer earnings multiple that together support a much higher NOK figure than today’s price suggests.

Result: Fair Value of NOK554 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Kongsberg Gruppen’s heavy exposure to European defense budgets and the ongoing need for high R&D spending could quickly undermine those bullish earnings and P/E assumptions.

Find out about the key risks to this Kongsberg Gruppen narrative.

Another View on Kongsberg Gruppen’s Valuation

The earlier fair value of NOK554 for Kongsberg Gruppen leans heavily on bullish earnings forecasts and a richer future P/E. In contrast, its current P/E of 46.6x is higher than the European Aerospace & Defense average of 30.4x and above a fair ratio of 55.2x, which implies less room for error if growth or sentiment cools.

For a closer look at what current pricing implies for future returns, take a look at the valuation breakdown in our detailed ratios view, including how the P/E compares with peers and the fair ratio estimate, via See what the numbers say about this price — find out in our valuation breakdown.

OB:KOG P/E Ratio as at Jul 2026
OB:KOG P/E Ratio as at Jul 2026

Next Steps

If this combination of optimism and caution around Kongsberg Gruppen leaves you unsure, quickly review the underlying data and form your own view with the 3 key rewards

Looking for more investment ideas beyond Kongsberg Gruppen?

Do not stop your research with Kongsberg Gruppen. Broaden your watchlist with fresh stock ideas that fit different goals, risk levels, and income preferences.

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.