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KONE Oyj (HLSE:KNEBV) Faces A Valuation Test After Mixed Q2 Earnings

Simply Wall St · 1d ago

KONE Oyj (HLSE:KNEBV) shares are in focus after the company released its second quarter and half year 2026 results, showing higher sales alongside lower net income and earnings per share.

See our latest analysis for KONE Oyj.

KONE Oyj's latest earnings release and recent launches like the myKONE digital portal and the enhanced Customer Service Center in Saudi Arabia come after a share price that has declined 17.79% year to date. The 3 year total shareholder return of 23.49% points to a stronger longer term picture than its recent 90 day share price return, which is down 7.56%.

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After KONE Oyj's share price decline this year and a mixed earnings picture, the gap between the current €50.10 price and valuation estimates stands out. Does that spread still signal upside, or has fair value moved lower?

Most Popular Narrative: 17.1% Undervalued

The most followed narrative currently places KONE Oyj's fair value at €60.43, compared with the recent €50.10 share price, and builds that gap on detailed growth and profitability forecasts.

Strong growth in modernization and service segments, driven by aging infrastructure upgrades and rising energy-efficiency requirements in both developed and emerging markets, is rapidly shifting KONE's sales mix toward higher-margin, recurring maintenance and modernization revenue, expected to drive improved net margins and more predictable earnings.

Read the complete narrative.

Curious what is sitting behind that fair value for KONE Oyj? The narrative leans heavily on future revenue, margin expansion and a specific profit multiple. The exact mix of these assumptions is where the story gets interesting.

Result: Fair Value of €60.43 (UNDERVALUED)

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

However, this KONE Oyj narrative could shift if prolonged weakness in China pressures margins, or if higher R&D and compliance costs weigh more heavily on profitability.

Find out about the key risks to this KONE Oyj narrative.

Another View: What KONE Oyj’s P/E Ratio Suggests

Those fair value narratives for KONE Oyj point to upside, yet the current P/E of 27.5x is higher than the European Machinery industry at 20.8x, the peer average at 18.3x, and even the 25.5x fair ratio that the market could move toward. Does that premium signal confidence or valuation risk for you?

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

HLSE:KNEBV P/E Ratio as at Aug 2026
HLSE:KNEBV P/E Ratio as at Aug 2026

Next Steps

With mixed signals on growth and valuation around KONE Oyj, it makes sense to move quickly, review the numbers yourself, and then weigh up the 2 key rewards and 1 important warning sign

Looking for more investment ideas beyond KONE Oyj?

If KONE Oyj has your attention, do not stop here. Use the Simply Wall St Screener to surface other clear ideas that fit your investing style.

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.