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Metso Oyj (HLSE:METSO) Could Be 5% Undervalued Following Higher Q2 Earnings

Simply Wall St · 2d ago

Metso Oyj (HLSE:METSO) has attracted fresh attention after reporting second quarter 2026 results. Sales reached €1,334 million and net income €128 million, with higher earnings per share than a year earlier.

See our latest analysis for Metso Oyj.

Metso Oyj’s latest earnings arrive after a period where the share price has moved around but still shows positive momentum, with a 30 day share price return of 7.62% and a 1 year total shareholder return of 53.88%.

If Metso’s results have you thinking about where capital goods demand and infrastructure spending could benefit other companies, it can be useful to scan related power and equipment suppliers using our 35 power grid technology and infrastructure stocks

Metso Oyj’s share price has already moved on the latest numbers, yet the stock still trades at a single digit percentage discount to both intrinsic estimate and analyst targets. Is the market being sensibly cautious or overly conservative on this one?

Most Popular Narrative: 4.8% Undervalued

Metso Oyj’s most followed narrative points to a fair value of €16.93 compared to the latest close at €16.11, which implies a small valuation gap that rests on detailed forecasts for growth, margins and discount rates.

Strong and rising order intake in Minerals services (+€160 million in H1), combined with normalization of higher-margin aftermarket mix in H2, indicates faster growth and margin expansion for recurring service revenues versus capital equipment, positively impacting net margins and earnings quality.

Read the complete narrative.

Want to see what has to happen for that fair value to make sense? The narrative leans on multi year revenue growth, rising margins and a re rated earnings multiple. The exact mix of those assumptions might surprise you.

Result: Fair Value of €16.93 (UNDERVALUED)

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

However, Metso Oyj’s narrative still hinges on better sales mix and smoother ERP rollout, and ongoing cost or margin pressure could quickly challenge that 4.8% undervalued view.

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

Another View On Metso Oyj’s Valuation

The earlier fair value for Metso Oyj leaned on detailed analyst estimates and a narrative model. A simple P/E check tells a different story. The stock trades on 26.6x earnings, compared with 20.8x for the wider European machinery group and 21.6x for peers, while the fair ratio sits slightly higher at 27.3x. That leaves Metso hovering near its fair ratio but well above industry and peer levels, which raises a practical question for investors about whether the current price leaves enough room for error.

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

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

Next Steps

Feeling unsure whether the current mix of optimism and caution around Metso Oyj really adds up for you? Take a close look at the underlying numbers, then weigh the upside and downside using the 3 key rewards and 1 important warning sign.

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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.