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NCAB Group (OM:NCAB) Posted Strong Earnings, Is It Still 11% Undervalued?

Simply Wall St · 2d ago

NCAB Group earnings trigger fresh interest in the stock

NCAB Group (OM:NCAB) has drawn investor attention after reporting second quarter 2026 results, with sales, revenue and net income for both the quarter and first half ahead of the prior year period.

See our latest analysis for NCAB Group.

NCAB Group's recent earnings announcement comes after a strong year-to-date share price return of 61.19% and a 1-year total shareholder return of 43.55%. Momentum has softened slightly over the past month but remains positive over the last quarter.

If this earnings reaction has you thinking about where else growth stories might be emerging, it could be worth scanning 54 AI infrastructure stocks as another way to find tech related infrastructure opportunities.

After NCAB Group's strong share price run and upbeat earnings, the key tension now is whether most of the gains are already reflected in the SEK 75.5 price, or if the current valuation still leaves meaningful upside.

Most Popular Narrative: 11.2% Undervalued

NCAB Group's most followed narrative pegs fair value at SEK 85, which sits above the latest close at SEK 75.5 and frames the stock as modestly undervalued based on analysts' long term assumptions.

M&A-driven consolidation and sectoral shifts toward digitalization and electrification are broadening the customer base and underpinning long-term organic growth.

Ongoing shift towards high-value, complex, and engineering-supported PCB applications (especially in segments like aerospace, defense, and high-tech) is resulting in higher-margin business and better gross margin resilience, even as standard product pricing remains under pressure.

Read the complete narrative.

Want to see what sits behind that SEK 85 fair value for NCAB Group? The narrative leans on a specific mix of revenue growth, margin lift and a future earnings multiple that is higher than the broader electronic industry. The real surprise is how those moving parts interact to justify a premium rating without assuming blue sky outcomes.

Result: Fair Value of SEK 85 (UNDERVALUED)

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

However, investors still need to factor in that NCAB Group relies entirely on external manufacturing and faces ongoing FX and pricing pressure, which could challenge the current growth narrative.

Find out about the key risks to this NCAB Group narrative.

Another View on NCAB Group's Valuation

While the narrative-based fair value of SEK 85 frames NCAB Group as modestly undervalued, the current P/E of 61.8x tells a tougher story. That is roughly 3x the European Electronic industry at 20.2x, well above peers at 26.7x and also richer than a 36.7x fair ratio our models suggest the market could move toward. This lifts valuation risk if expectations cool.

If earnings progress does not keep up with that premium, how comfortable are you paying today’s price multiple for tomorrow’s story?

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

OM:NCAB P/E Ratio as at Jul 2026
OM:NCAB P/E Ratio as at Jul 2026

Next Steps

The mix of enthusiasm and caution around NCAB Group is clear, so move quickly, study the data for yourself, and weigh the 1 key reward and 1 important warning sign.

Looking for more investment ideas beyond NCAB Group?

If NCAB Group has sharpened your focus on quality and valuation, do not stop here. Use targeted screeners to spot other opportunities that might suit your approach.

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.