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Valmet Oyj (HLSE:VALMT) Could Be 8% Undervalued On Fresh Asia Contract

Simply Wall St · 1d ago

Why This New Asian Contract Matters For Valmet Oyj

Valmet Oyj (HLSE:VALMT) has secured a contract to deliver a coated board line, automation, and lifecycle services to a customer in Asia. The project is planned to start up in 2028 and will be included in orders for the third quarter of 2026.

For context, Valmet Oyj’s share price has climbed 34.66% over the past 90 days and the one year total shareholder return sits at 1.98%. This fresh Asian contract and the recent removal from the FTSE All-World Index arrive as momentum in the stock is building again from a subdued longer term base.

Scan beyond Valmet Oyj and see how other industrial players with fresh contract momentum line up on our curated list of 618 high quality undiscovered gems.

Valmet Oyj trades below both analyst targets and estimated fair value, even after the sharp 90 day jump. Is that a bargain signal, or is the market pricing in real risks?

Most Popular Narrative: 8% Undervalued

Valmet Oyj last closed at €28.44, while the most followed narrative pegs fair value closer to €31.02. This frames the current price as a discount that investors need to explain for themselves.

The implementation of Valmet's new operating model, which simplifies structure and fosters faster decision-making and local accountability, is expected to drive recurring annual cost savings of around €80 million by early 2026. This structural catalyst should directly lower SG&A and COGS, supporting margin expansion and improved earnings over time.

See why 35 investors see Valmet Oyj as 8% undervalued.

Result: Fair Value of €31.02 (UNDERVALUED)

Still, the whole Valmet Oyj story can be knocked off course if large capital projects are delayed or if Biomaterial Solutions continues to fall short of its 14% EBITA ambition.

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

Next Steps

Mixed signals around Valmet Oyj can be useful if you act while sentiment is still forming, so pressure test the numbers and narrative yourself with a quick review of the 5 key rewards and 1 important warning sign.

Looking For More Investment Ideas Beyond Valmet Oyj?

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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.