WEBULL

Storebrand (OB:STB) Could Be 56% Undervalued After Mixed Q2 Earnings

Simply Wall St · 2d ago

Storebrand earnings update and what changed this quarter

Storebrand (OB:STB) reported second quarter 2026 results with net income of NOK 1,431 million and basic EPS of NOK 3.38, alongside a lower half year net income versus the prior year period.

See our latest analysis for Storebrand.

Storebrand's recent second quarter earnings release appears to be a key backdrop to the share price. The stock now trades at NOK 200.6 after a 10.04% 1 month share price return and a 39.66% 1 year total shareholder return, suggesting momentum has been building over both shorter and longer periods.

If this move in Storebrand has you looking for other potential ideas, it could be a good moment to scan the market for quality businesses using our 107 top founder-led companies

After a sharp move in Storebrand's share price and a wide gap between its latest intrinsic value estimate and the analyst target, the key question now is whether the current NOK 200.6 price sits closer to upside or downside territory.

Preferred P/E of 17.3x: Is it justified?

Storebrand currently trades on a P/E of 17.3x, which sits above both its insurance peers and the wider European insurance industry, even after the recent share price move to NOK 200.6.

The P/E multiple compares the share price with earnings per share, so a higher P/E usually means investors are willing to pay more for each unit of current earnings, often when they see relatively strong or resilient profit potential.

For Storebrand, there are a few mixed signals sitting behind that 17.3x figure. On one hand, earnings have grown by 13.7% per year over the past 5 years and are described as high quality, and our estimate of future cash flow value of NOK 312.94 per share indicates the SWS DCF model points to a fair value that is well above the current price. On the other hand, earnings growth over the past year was 5%, below both its own 5 year average and the insurance industry figure of 16.8%. Profit margins are lower than last year at 4.5% compared to 9.8%, and return on equity of 15% is flagged as low versus a 20% threshold.

Comparing that 17.3x P/E to the wider sector puts it into clearer context. Storebrand screens as expensive against the European insurance industry average of 13.1x and also above the peer average of 14.6x. Its P/E is considered in line with an estimated fair P/E of 18x that our fair ratio work suggests the market could move toward if the underlying earnings and cash flow profile are sustained.

Explore the SWS fair ratio for Storebrand

Result: Price-to-earnings of 17.3x (OVERVALUED)

However, Storebrand's annual revenue contraction, thinner profit margin and a share price sitting above the average analyst target could all challenge the current valuation narrative.

Find out about the key risks to this Storebrand narrative.

Another view on Storebrand's value

While the 17.3x P/E makes Storebrand look expensive against the European insurance sector at 13.1x and peers at 14.6x, the SWS DCF model points the other way. It shows an estimated future cash flow value of NOK 312.94 per share, which is well above the NOK 200.6 price. Which signal should carry more weight for you?

Look into how the SWS DCF model arrives at its fair value.

STB Discounted Cash Flow as at Jul 2026
STB Discounted Cash Flow as at Jul 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Storebrand for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 247 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With Storebrand showing both appealing metrics and some points of concern, it makes sense to move quickly and weigh the trade off yourself using the 3 key rewards and 2 important warning signs

Looking for more investment ideas beyond Storebrand?

If Storebrand has sharpened your focus, do not stop here. Use these focused screens to spot other opportunities that match how you like to invest.

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.