Is EQT (OM:EQT) Expensive Or Undervalued After Strong Half Year Results?

EQT (OM:EQT) is in focus after reporting half year 2026 results, with revenue of €1,610 million and net income of €663 million, compared with €1,273 million and €346 million a year earlier.

See our latest analysis for EQT.

The latest half year figures land after a mixed period for EQT, with a 20.27% 1 month share price return contrasting with a decline of 12.06% for the year to date and a 3 year total shareholder return of 30.78%. This suggests shorter term momentum has recently picked up against a weaker longer term share price path.

If this earnings move has you thinking about where else capital could work, it may be worth scanning opportunities in AI infrastructure through the 55 AI infrastructure stocks

Given EQT's stronger recent share move against a weaker year to date record, the real test now is whether the current price still offers a skewed payoff for new money or mainly suits existing holders locking in gains.

Most Popular Narrative: 14.9% Undervalued

EQT last closed at SEK315, while the most followed narrative points to a fair value of around SEK370, using a 6.1% discount rate as its anchor.

EQT is positioned to capture substantial long term growth from the ongoing expansion of private capital allocations by both institutional and private wealth clients globally. These are described as secular shifts that are expected to drive significant step ups in fundraising volumes and recurring management fee revenues over the coming years.

The firm's global diversification, especially its push into fast growing Asian markets (for example, India and Japan) and the U.S., is presented as a way to benefit as more capital is funneled into private assets in these regions, supporting sustained AUM growth and higher future earnings.

Read the complete narrative.

The narrative explores why EQT is seen as having the potential to compound earnings quickly, with higher margins and a richer profit multiple reflected in the analysis. The full narrative lays out the revenue build, margin shift and valuation bridge step by step, so you can assess how those assumptions compare with your own expectations.

Result: Fair Value of SEK370 (UNDERVALUED)

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

However, EQT's story could look very different if fundraising momentum slows or if exit markets stay weak, which would put pressure on fee and performance income.

Find out about the key risks to this EQT narrative.

Another View on EQT’s Valuation

The earlier fair value of SEK370 for EQT came from a future cash flow approach, which points to the shares trading at about a 20.4% discount. Looking at the P/E ratio instead, the picture is more cautious, with EQT on 31.9x compared with a peer average of 18.9x and a fair ratio of 30.3x. That gap suggests investors are already paying up on earnings, so the question is whether the quality and growth profile justify holding a premium while the DCF still signals undervaluation.

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

Next Steps

If the mix of optimism and caution around EQT leaves you unsure, act quickly to examine the numbers yourself and rigorously test the assumptions. To see what investors are most focused on, review the 3 key rewards

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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.

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