Consumer Cyclical · Apparel Manufacturing · Nasdaq Stockholm · Sweden
kr 55.90-1.93%
Market cap kr 1.4BNext earnings 2025-08-15Updated Oct 23, 2026
Our verdict
Trades 33% above our fair value
Price
kr 55.90
Model fair valueConfidence: good
kr 41.94
Model range
kr 28.17 to kr 67.90
Fair value kr 41.94
Price kr 55.90
5 models fit Björn Borg AB (publ) and they disagree: 0 of 5 land within 15% of the average.
Two or more of our models back this value.
Premium(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionBjörn Borg AB (publ) (BORG.ST)
Fair value (5 models)
kr 41.94
ACCE price target
kr 59.00
Rating
Overvalued
Horizon
12 months
Fair value published on 23 Oct 2026, 11:04 CEST.
ACCE price target published on 23 Oct 2026, 01:53 CEST.
Rating published on 23 Oct 2026, 11:04 CEST.
Price used: kr 55.90 at the close on 23 Oct 2026, 17:30 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
33.3% above
-25.0% to fair value
ACCE score
58
out of 100
P/E
14.4x
forward 13.3x
1-year return
-12.0%
Dividend yield
5.26%
Björn Borg AB (publ) in four questions
Plain answers, details below
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Overview
ACCE thesis
Björn Borg designs and sells men's and women's underwear, athleisure and training apparel under its own brand, with a licensing and wholesale business that puts product through department stores and sporting goods retailers across Europe and beyond. The attraction is a 54% gross margin, which is high for apparel and points to a brand customers still pay up for, combined with a 28.6% ROE on a company carrying little debt relative to its equity. Revenue fell 12.2%, so the current case rests on whether the brand can stabilise sales and rebuild operating margin from 3.7%, where the company has far more room to recover than a higher-margin peer would. At 13.5 times forward earnings the stock is priced for little improvement, which makes the margin trajectory over the next few reporting periods the thing to test before anything else.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Revenue shrinking sharply
Revenue fell 12.2% year over year, against a 5-year CAGR of 8.2%. Earnings growth of 116.2% looks inflated from a low base, not from demand.
moderate
Earnings miss last quarter
Q3 2026 EPS came in 8.1% below expectations. Combined with falling revenue, it raises doubt about the durability of recent profit gains.
moderate
Thin operating margin
Operating margin is 3.7% despite a 54.0% gross margin, so most gross profit is absorbed by costs. Net margin of 9.4% is likely flattered by non-operating items.
moderate
Price well above model fair value
The price of kr 55.90 trades 33.3% above the model fair value of kr 41.94, and sits 5.3% below the ACCE price target of kr 59.00.
AI research notes
AI-assisted·How I use AIWritten Oct 24, 2026 · figures from 2026-10-23 · prices to Oct 23, 2026
Why it could do well
Return on equity of 28.6% and return on invested capital of 16.4% show the business earns strong returns on the money put into it.
The shares trade at 13.3 times forward earnings, below the sector median of 17.8 times, and the dividend yields 5.3%.
Analysts' mean price target of SEK 67.17 sits 20.2% above the current share price, suggesting the Street sees upside.
Why it could disappoint
Revenue fell 12.2% year over year, a sharp reversal against an average annual growth rate of 8.2% over five years.
The consensus model fair value of kr 41.94 sits 33.3% below the current price of kr 55.90, and all five models point the same way.
Last twelve months free cash flow of SEK 45M gives a 3.2% yield, below the 5.3% dividend yield, so the payout depends on cash improving.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
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Valuation
INVESTOR
Where BORG.ST's valuation models land
Price
kr 55.90
Model fair value
kr 41.94
Model range
kr 28.17 to kr 67.90
Fair value kr 41.94
Price kr 55.90
The price sits inside the model range.
Model
Fair value
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Dividend discount
EV/EBITDA comparison
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