Last Update 05 Jan 26
Fair value Decreased 23%Valuation rising faster than expected; orders no issue but delivery is challenging.
Following current development, the stock price and valuation increased much faster than expected. Orders and sales no issue, but the capacity of production and delivery can no longer justify this level. The stock price needs to come down until production capacity increases.
Saab AB is a leading European defence company with operations across air, land, sea and the cyber domain. Through its subsidiary Combitech, Saab also provides advanced consulting and cybersecurity services.
With a record order backlog of about SEK 197 billion and several new contracts worth over SEK 16 billion just within the passed days, Saab’s long-term revenue visibility is strong. The company continues to benefit from rising European defence spending and increasing demand for self-sufficiency in advanced defence technology.
Given its diversified portfolio, solid balance sheet and consistent order growth, analysts see room for continued upside. A fair value range of SEK 650–700 per share appears reasonable if margins are maintained and new programs are executed as planned.
Sources: Saab Q2 2025 report, Saab press releases (A26 submarine and fighter orders), Yahoo Finance market data.
Have other thoughts on Saab?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeHow well do narratives help inform your perspective?
Disclaimer
The user LongTrader has a position in OM:SAAB B. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
