Besqab AB (publ) (BESQAB.ST) fair value

ACCE thesis

Besqab is a Stockholm-listed developer of residential and commercial property, building apartments and mixed-use projects in and around Swedish urban centres and selling or retaining them through its own development pipeline. The case rests on a development model where margins have recovered, with an operating margin of 16.3% against a gross margin of 14.9%, though the trailing P/E of 78.7 reflects depressed earnings rather than a stretched valuation. Revenue growth of 654.1% is a base effect from a small prior-year denominator, so the forward P/E of 16.2 is the more useful gauge of what the market is paying for normalised earnings. The near-term question is whether reported profits hold up as projects deliver, since a 4.4% ROE shows the equity base is not yet earning much. Worth a deeper look if you want exposure to Swedish development at a sub-SEK 3bn cap, with the pipeline timing and project margins as the items to verify.