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Alfa Laval AB (ALFA) Fair Value & Analysis

Industrials · SE · Market cap 231B SEK (≈ $24.2B) · ISIN SE0000695876

What is Alfa Laval AB really worth?

AL Alfa Laval AB ALFA · ST
Pricekr 555.80
Fair Valuekr 372.32
Upside−33.0%
Quality63/100

A solid business, but trading 49% above our fair value of kr 372.32.

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Strengths

Healthy Growth (revenue 5y +10.9 %/yr)
Solidly profitable · 11.8% net margin
Low debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Moderate moat 60/100

For context

·1.62% dividend yield
Evidence: High Range kr 222.76 – kr 525.35

Fair value as of: Aug 28, 2026

From 24 valuation models · updated 8 days ago

Share price −2.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (kr 525.35). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (kr 222.76 to kr 525.35) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

kr 588.80 kr 218.81 Fair Value kr 372.32 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

60‑month range kr 218.81 – kr 588.80 · fair‑value band kr 222.76 – kr 525.35 · the kr 555.80 price screens above the kr 372.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Alfa Laval AB (ALFA) currently trades at kr 555.80, while our model-based Fair Value estimate is kr 372.32, implying the stock looks roughly 49.3% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of kr 373.01 per share, and 0 of the 24 models we run sit above the kr 555.80 price. Bear case: the Asset-Based group reads lowest at kr 70.37, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Alfa Laval AB generated revenue of 69.1B SEK at a net margin of 11.8%. Revenue declined 3.3% year over year. It earns a return on equity of 18.3%. Net debt stands at 13.9B SEK. Fundamentals as of Aug 28, 2026

Our scenario range runs from kr 222.76 (bear case) to kr 525.35 (bull case); at kr 555.80, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 3% below its 52-week high and 46% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −52% fair-value upside, at −33%, ALFA screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly kr 7.29 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF kr 172.62 kr 279.45 kr 450.86 79
Growth DCF kr 176.34 kr 271.56 kr 415.20 78
Owner Earnings kr 229.40 kr 370.18 kr 596.06 75
All 24 models by family
DCF Models
FCF DCF kr 172.62 kr 279.45 kr 450.86 79
Owner Earnings kr 229.40 kr 370.18 kr 596.06 75
5Y Revenue Exit kr 188.80 kr 314.03 kr 474.53 72
5Y EBITDA Exit kr 267.88 kr 462.19 kr 690.14 74
5Y P/E Exit kr 240.84 kr 411.53 kr 591.26 70
10Y Revenue Exit kr 174.84 kr 289.81 kr 445.38 66
10Y EBITDA Exit kr 233.21 kr 395.14 kr 614.00 67
10Y P/E Exit kr 215.57 kr 359.12 kr 536.67 63
Earnings-Based
Graham-Dodd kr 136.09 kr 425.81 kr 566.61 64
Lynch FV kr 92.88 kr 132.69 kr 172.49 61
PEG = 1.0 kr 92.88 kr 132.69 kr 172.49 57
EPV kr 233.83 kr 276.16 kr 313.79 74
Multiples
P/E Multiple kr 315.21 kr 420.28 kr 525.35 63
P/S Multiple kr 252.85 kr 337.14 kr 421.42 58
P/B Multiple kr 255.17 kr 340.23 kr 425.28 55
EV/EBIT kr 388.48 kr 520.00 kr 651.51 66
EV/EBITDA kr 354.69 kr 474.94 kr 595.19 67
EV/Revenue kr 206.34 kr 297.37 kr 388.40 53
Asset-Based
NCAV (Graham) kr 52.51 kr 70.37 kr 105.02 54
Growth DCF
Growth DCF kr 176.34 kr 271.56 kr 415.20 78
Rev-Margin DCF kr 188.80 kr 313.30 kr 456.24 72
Economic Profit
Residual Income kr 135.99 kr 179.43 kr 702.49 64
ROIC Compounder kr 252.28 kr 324.54 kr 409.93 72
Growth Earnings
Growth-Adj P/E kr 261.11 kr 373.01 kr 484.91 67

Widest divergence: Growth Earnings (kr 373.01) versus Asset-Based (kr 70.37). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 28.1
P/S ratio 3.33 P/E × margin
EPS (TTM) kr 19.80 price ÷ EPS = P/E 28.1
Dividend yield 1.6% payout 45.5%
Net margin 11.9% FY2025
Return on equity 18.3% TTM
More key figures
Profitability
Return on assets (EBIT) 10.7% avg 5y
Operating margin 17.1% TTM
Growth
Revenue (TTM) 69.1B SEK TTM
Revenue growth (YoY) −3.3% 3y avg +10.1%
EPS growth (YoY) −4.6%
Balance sheet & cash flow
Free cash flow 6.2B SEK FY2025
Net debt 13.9B SEK FY2025 · ≈ 2.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 62 · Market factors (momentum, volatility) 70

Profitability 55
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 48
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 58
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates through three divisions: Energy, Food & Pharma, and Ocean.

Full company description

Alfa Laval AB (publ) provides heat transfer, separation, and fluid handling products and solutions worldwide. The company operates through three divisions: Energy, Food & Pharma, and Ocean. It offers ballast water management systems; oil/gas-fired steam and composite steam boilers, exhaust gas economizers, electric steam boilers, and exhaust gas steam boilers; and exhaust gas cleaning products, as well as decanters and separators. The company also provides sensing and control, cleaning validation, and condition monitoring automation products; hygienic fittings, hygienic tubes, ultrapure fittings, and ultrapure tubes; agitators, tank mixers, and powder mixers; and centrifugal pumps, circumferential piston pumps, rotary lobe pumps, twin screws, three screw pumps, gear pumps, and reciprocating pumps. In addition, it offers rotary jet heads, rotary spray heads, wall mounted cleaning devices for tank cleaning, and static spray balls; and tank covers and accessories, as well as valves. Further, the company provides plate heat exchangers, air cooled heat exchangers, scraped surface heat exchangers, and tubular heat exchangers. It serves energy and utilities, home and personal care, food, dairy and beverage, marine and transportation, pharma and biotech, and water and wastewater industries. Alfa Laval AB (publ) was founded in 1883 and is headquartered in Lund, Sweden.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Alfa Laval AB reported revenue of 69.7B SEK in FY2025 versus 40.9B SEK in FY2021, a compound +14.2%/yr. Reported net income was 8.3B SEK in FY2025, compounding +14.8%/yr from FY2021.

Growth Quality 93/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
69.7B SEK
Latest YoY
+4.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.9%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+13.5% (11.9 + 1.6)
Revenue +14.2%/yr
FY21 40.9B SEK
FY22 52.1B SEK
FY23 63.6B SEK
FY24 67.0B SEK
FY25 69.7B SEK
Net income +14.8%/yr
FY21 4.8B SEK
FY22 4.5B SEK
FY23 6.3B SEK
FY24 7.4B SEK
FY25 8.3B SEK
Character of growth · EPS growth decomposed (2014-2025) +10.5 % p.a.
Revenue per share +7.0 %

of which total revenue +6.8 % · buybacks/dilution +0.2 %

EBIT margin +3.3 %
Tax rate +0.5 %
Residual (interest, one-offs) −0.5 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ALFA screens 49% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Alfa Laval AB Fair Value". https://www.fairvalue-calculator.com/stock/ALFA

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 792 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside −33% · Above median
Return on equity (TTM) 18% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth −3% · Below median
Dividend yield (TTM) 1.6% · Above median
Debt / equity 0.22× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 28.1× · Cheaper than median
P/B 5.32× · Pricier than 75% of peers
P/S (TTM) 3.34× · Pricier than median
P/FCF 3.9× · Cheaper than median
EV/EBITDA 17.1× · Pricier than median
PEG 3.23× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 21
PAST73 · sector 28
HEALTH89 · sector 96
DIVIDEND32 · sector 27

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc GEV $941.84 $131.95 −86%
SIE SIE €289.85 €139.77 −52%
Eaton Corporation ETN $402.78 $168.65 −58%
Parker-Hannifin Corporation PH $995.02 $398.69 −60%
Atlas Copco AB ATCOA kr 206.60 kr 112.59 −46%
Cummins Inc CMI $564.40 $348.94 −38%
Illinois Tool Works Inc ITW $281.67 $145.84 −48%
Emerson Electric Co EMR $155.18 $58.44 −62%
AMETEK, Inc AME $236.25 $125.80 −47%
Rockwell Automation, Inc ROK $417.53 $125.76 −70%

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Frequently asked questions

Is Alfa Laval AB (ALFA) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of kr 372.32 versus a price of kr 555.80, about −33% upside (overvalued).
What is the fair value of ALFA?
Our model-based fair value for Alfa Laval AB is kr 372.32 (as of Aug 28, 2026), built from audited fundamentals. The current price: kr 555.80.
What is the quality score of ALFA?
Alfa Laval AB has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Alfa Laval AB (ALFA)?
Alfa Laval AB reported trailing-twelve-month revenue of about 69.1B SEK (latest available figure, as of Aug 28, 2026).
What is the net profit margin of ALFA?
The net profit margin of Alfa Laval AB is about 11.8%, meaning it keeps roughly 11.8% of revenue as net income. Based on the latest reported figures.
Does Alfa Laval AB pay a dividend?
Alfa Laval AB currently shows a dividend yield of about 1.62% relative to its recent price (as of Aug 28, 2026).
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