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What Is Drawing Fresh Attention To Saipem (BIT:SPM)?

Simply Wall St · 2d ago

Saipem (BIT:SPM) has been added to the FTSE All-World Index (USD), a change that can influence how large global funds track and access the stock within diversified equity portfolios.

For context, Saipem’s share price is at €4.354, with a year-to-date share price return of 74.16% and a 1-year total shareholder return of 83.92%, while the 3-year total shareholder return of 252.44% points to strong longer-term momentum despite a weaker 5-year record.

Compare Saipem’s new index inclusion with other globally focused contractors by scanning our hand picked list of solid balance sheet and fundamentals (204 results) in related energy and infrastructure plays.

Saipem now has index backing and a strong recent track record, yet the share price already reflects a powerful run. Is the current valuation still offering enough compensation for the risks you are taking today?

Most Popular Narrative: 27% Undervalued

Saipem's most followed valuation story points to a fair value of about €5.99, compared with the latest close at €4.354. This frames the recent index inclusion against a market price that still sits below this narrative estimate.

The imminent Mozambique LNG restart where Saipem claims €3 billion in backlog exposure combined with deepening exposure to global gas infrastructure, can trigger a sharp step-change in both revenues and EBITDA, as energy security and LNG expansion rapidly accelerate across Africa and other growth markets.

See why 7 investors see Saipem as 27% undervalued.

Result: Fair Value of €5.99 (UNDERVALUED)

Still, Saipem’s reliance on conventional oil and gas projects, along with the risk of further losses on complex fixed price contracts, could quickly weaken that bullish valuation story.

Find out about the key risks to this Saipem narrative.

Another View on Saipem’s Valuation

The story changes once you look at Saipem through its P/E. The shares trade on 31.6x earnings, compared with 16x for peers, 13.4x for the wider European Energy Services group, and a fair ratio of 28.4x. That premium points to less margin for error if the upbeat narratives fall short.

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

BIT:SPM P/E Ratio as at Sep 2026
BIT:SPM P/E Ratio as at Sep 2026

Next Steps

Strong opinions already surround Saipem, but the real edge comes from testing those views against the underlying data and forming your own stance quickly. To weigh both the upside and the downside, start with our breakdown of 2 key rewards and 1 important warning sign.

Looking for more Saipem style investment ideas?

If you like what Saipem's story reveals about timing, risk and valuation, do not stop here. Use focused stock lists to surface fresh candidates that match your criteria and keep your watchlist moving forward with intention.

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.