Borregaard (OB:BRG) On Higher BioMaterials Guidance And A Fair Value Debate
Borregaard (OB:BRG) is back in focus after its second quarter 2026 report showed higher sales alongside a shift to a net loss, followed by updated volume guidance that raised expectations for the BioMaterials segment.
See our latest analysis for Borregaard.
Borregaard’s recent guidance on higher BioMaterials volumes has come alongside a 6.05% 1 month share price return and a year to date share price decline of 19.74%. The 5 year total shareholder return is also down, which suggests momentum has been weak despite the latest update.
If you are weighing Borregaard against other opportunities in the materials and industrial space, this could be a good moment to see what else is on the move with 8 top copper producer stocks
Borregaard’s higher BioMaterials volume outlook and recent share price bounce contrast with weaker share returns over one and five years. Does it make more sense to commit at today’s price, or to wait for an even cheaper entry before the valuation work stacks up?
Most Popular Narrative: 9.3% Undervalued
The most followed narrative puts Borregaard’s fair value at NOK174 per share, compared with the last close at NOK157.80. That gap hinges on how future earnings and margins play out.
The favorable product mix in BioSolutions, particularly with high-value specialty products, is anticipated to boost overall earnings and contribute to higher net margins. Tariffs and trade dynamics, although presenting some uncertainty, might have less impact on Borregaard due to its highly specialized products and diverse market presence, thereby potentially stabilizing revenue despite global trade fluctuations.
Want to see what is really behind that fair value for Borregaard? The core of the narrative is a specific blend of revenue growth, fatter margins and a future earnings multiple that has to line up cleanly for NOK174 to make sense.
Result: Fair Value of NOK174 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear risks to this Borregaard story, including higher wood and logistics costs, or weaker bioethanol pricing that could pressure margins and sentiment.
Find out about the key risks to this Borregaard narrative.
Another View: Borregaard Through the Earnings Multiple Lens
The SWS DCF model points to a fair value of NOK284.05 per Borregaard share, well above the current NOK157.80 level, which screens as undervalued on that basis. Yet the stock trades on a P/E of 93x compared with a fair ratio of 39.5x and a peer average near 19x, which suggests a rich earnings multiple and higher valuation risk if forecasts slip. Which signal do you trust more when the DCF and the P/E are this far apart?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Given the mixed signals around Borregaard right now, it makes sense to check the full picture for yourself and move quickly while sentiment is split. One way to do that is to review both the concerns and the potential upside through the 2 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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