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    Is Elkem (OB:ELK) Undervalued As Weaker Q2 Results Raise Fresh Questions?

    Simply Wall St·07/13/2026 04:42:47
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    Elkem (OB:ELK) is in focus after reporting second quarter 2026 results. The company reported lower sales and revenue alongside a wider net loss, raising fresh questions about its operational performance and profitability.

    See our latest analysis for Elkem.

    At a share price of NOK30.3, Elkem has seen short term pressure with a 7 day share price return of a decline of 4.72% and a 30 day share price return of a decline of 8.51%. However, the 1 year total shareholder return of 28.65% and 3 year total shareholder return of 35.87% indicate that longer term holders have still seen gains as the market weighs weaker recent results alongside the upcoming CEO transition.

    If Elkem's recent earnings setback has you reassessing your exposure to materials and industrials, this can be a useful moment to broaden your watchlist with companies tied to long term infrastructure and grid upgrades such as 34 power grid technology and infrastructure stocks

    Elkem now trades around NOK30.3, at a meaningful discount to both analyst targets and some intrinsic value estimates as losses deepen and leadership changes approach. The key question is how much of that gap really looks deserved before you weigh valuation.

    Most Popular Narrative: 39.4% Undervalued

    Against a last close of NOK30.3, the most followed Elkem narrative points to a fair value of NOK50, which is a sizeable gap investors will likely want to understand.

    It appears that the transaction/sale of the silicone business is proceeding according to plan. If the transaction price had fallen outside the book value range used in the sensitivity analysis disclosed in the company’s annual report, the company has stated that it would have been required to inform the market. Such an announcement could still occur, but it is reasonable to assume that we are likely past that point in the process by now. This provides comfort regarding the valuation.

    Read the complete narrative.

    According to Nidaros_scout, this valuation hangs on the silicone sale, ambitious earnings projections and a profit multiple more often linked with fast growing sectors. It may be useful to consider which assumptions really carry the NOK50 figure.

    Result: Fair Value of NOK50 (UNDERVALUED)

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

    However, Elkem’s narrative depends heavily on the silicone business sale proceeding as hoped and on earnings remaining close to the projections used in this valuation.

    Find out about the key risks to this Elkem narrative.

    Next Steps

    With Elkem’s mixed picture of pressure on recent earnings alongside longer term gains, it makes sense to check the full risk and reward balance yourself. You can see both sides clearly by reviewing the 2 key rewards and 2 important warning signs

    Looking for more investment ideas beyond Elkem?

    Do not stop with Elkem. Broaden your watchlist using focused stock lists that can help you spot strong balance sheets, dependable income and under followed opportunities before others.

    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.