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    Why Scatec (OB:SCATC) Is Back In The Spotlight

    Simply Wall St·10/25/2026 14:24:29
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    Why Scatec’s Egypt Deal Is Drawing Fresh Attention

    Scatec (OB:SCATC) has moved into focus after agreeing with the European Bank for Reconstruction and Development to create a renewable energy investment platform in Egypt with up to $221 million in funding commitments.

    The structure gives Scatec a 60% stake in the platform, with EBRD holding 40%. It is intended to speed up development and financing of near term Egyptian projects within the group’s wider renewable portfolio.

    Scatec’s share price has fallen sharply in recent months, with a 7 day share price return of down 24.46% and a year to date share price return of down 28.59%. The 3 year total shareholder return of 33.42% contrasts with a 5 year total shareholder return that is down 51.29%, signaling that longer term investors have experienced meaningful swings in sentiment even as the new Egypt platform becomes the latest potential catalyst in the story.

    Spot opportunities alongside Scatec by scanning a curated list of renewable and infrastructure players using our 42 power grid technology and infrastructure stocks.

    Scatec’s sharp share price slide, alongside the Egypt platform announcement, puts the debate in focus. Are you seeing business fundamentals being reassessed, or sentiment resetting around the same underlying assets?

    Price-to-Sales of 3.2x: Is It Justified for Scatec?

    Valuation on Scatec is split. On one side, the stock trades at a P/S of 3.2x, which is below its estimated fair P/S of 12.5x and below a peer average of 10.4x. On the other side, the share last closed at NOK77.05 while the SWS DCF model indicates a future cash flow value of NOK12.67, which frames the current level as rich on a cash flow basis.

    The P/S ratio compares Scatec’s market value to its NOK3,886.0m in revenue. For a renewable energy operator and developer, investors often watch this metric when earnings are negative, since Scatec reported a net loss of NOK282.0m and traditional P/E ratios are not meaningful.

    Against its own fair P/S estimate of 12.5x, the current 3.2x looks materially lower. That points to a market that is assigning a discount versus the level the fair ratio suggests it could move toward if sentiment around revenue quality, growth forecasts and risk were fully reflected.

    Relative to the broader European renewable energy group, where the average P/S is 2.2x, Scatec trades at a clear premium. The market is paying more per unit of sales than the regional peer set, and that higher multiple implies investors are currently pricing in stronger revenue growth, better project economics, or a different risk profile compared with the industry.

    Explore the SWS fair ratio for Scatec.

    Result: Price-to-Sales of 3.2x (ABOUT RIGHT)

    Still, Scatec faces clear pressure if project execution in markets like Egypt slips or if continued losses keep investors questioning how sustainable the current P/S premium is.

    Find out about the key risks to this Scatec narrative.

    Another View: Scatec Through The DCF Lens

    The multiple story around Scatec looks one way. Our DCF model tells a very different tale. With the share price at NOK77.05 and an estimated future cash flow value of NOK12.67, that framework presents the stock as expensive rather than cheap on revenue. Which lens do you trust more when cash generation is still in the red?

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

    SCATC Discounted Cash Flow as at Oct 2026
    SCATC Discounted Cash Flow as at Oct 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Scatec 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 194 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

    Scatec’s set of signals will not line up the same way for every investor, so move quickly from headline takeaways to your own checklist. To weigh both the concerns and the potential upside in one place, start with the 2 key rewards and 2 important warning signs.

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    If you stop with Scatec, you risk missing other opportunities that fit your goals, risk limits, and income needs across different parts of the market.