Veidekke (OB:VEI) On Higher Earnings And The Question Of Fair Value

Veidekke (OB:VEI) released its second quarter and first half 2026 results on 14 August, reporting higher sales, net income and earnings per share compared with the same periods a year earlier.

See our latest analysis for Veidekke.

Veidekke’s latest earnings release comes after a steady share price trend, with the stock up 15.3% year to date and a 1 year total shareholder return of 33.32%, which may indicate increasing momentum behind recent results.

If Veidekke’s move has you considering what else is working in construction linked themes, this could be a good moment to check out 39 power grid technology and infrastructure stocks

Bulls point to Veidekke’s recent earnings and share price strength. Bears focus on how much of that optimism is already in the price. The following valuation section helps weigh which side the current data supports.

Price-to-Earnings of 16.2x: Is it justified?

Veidekke currently trades at a P/E of 16.2x, which sits above both its European construction industry average of 15.7x and the peer average of 14.8x. At a last close of NOK202, that premium hints that the market is already pricing in a relatively strong earnings profile compared with many construction peers.

The P/E ratio compares Veidekke’s share price to its earnings per share and is a common way investors gauge how much they are paying for each unit of current earnings. For a construction and infrastructure company, this often reflects expectations around contract quality, earnings visibility and how sustainable recent profit levels appear.

Veidekke’s 16.2x P/E sits above the estimated fair P/E of 15x. This suggests investors are paying more than the level the fair ratio model points to as a potential anchor. It is also higher than both the broader European construction industry average of 15.7x and the narrower peer group average of 14.8x. As a result, the stock is priced at a clear premium compared with both its sector and closest comparables. Explore the SWS fair ratio for Veidekke

Result: Price-to-Earnings of 16.2x (OVERVALUED)

However, you also need to consider risks such as project execution challenges across Norway, Sweden and Denmark, as well as any shift in construction demand affecting Veidekke’s order pipeline.

Find out about the key risks to this Veidekke narrative.

Another View on Veidekke using our DCF model

The earlier P/E work suggested Veidekke looks expensive against construction peers. Our DCF model points in a different direction. At NOK202 the stock trades around 10.3% below an estimated fair value of NOK225.27. That implies the current earnings multiple might not tell the whole story.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Veidekke for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 270 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

The mixed signals on Veidekke might leave you uncertain, which is exactly why it makes sense to review the facts yourself and move quickly to form a view based on 3 key rewards and 1 important warning sign

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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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