Consumer Cyclical · Furnishings, Fixtures & Appliances · Nasdaq Stockholm · Sweden
kr 28.60-0.69%
Market cap kr 23.2BNext earnings 2025-07-18Updated Oct 22, 2026
Our verdict
Trades 33% below our fair value
Price
kr 28.60
Model fair valueConfidence: good
kr 42.53
Model range
kr 21.09 to kr 76.28
Fair value kr 42.53
Price kr 28.60
3 models fit AB Electrolux (publ) and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
ACCE opinionAB Electrolux (publ) (ELUX-A.ST)
Fair value (3 models)
kr 42.53
ACCE price target
kr 31.00
Rating
Undervalued
Horizon
12 months
Fair value published on 22 Oct 2026, 13:04 CEST.
ACCE price target published on 23 Oct 2026, 01:52 CEST.
Rating published on 22 Oct 2026, 13:04 CEST.
Price used: kr 28.60 at the close on 23 Oct 2026, 17:30 CEST.
Models: P/E comparison, EV/EBITDA comparison, and Graham number.
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
32.8% below
+48.7% to fair value
ACCE score
34
out of 100
1-year return
-56.3%
Dividend yield
0.00%
AB Electrolux (publ) in four questions
Plain answers, details below
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Overview
ACCE thesis
AB Electrolux makes household appliances, including cooking, cooling and laundry products sold under the Electrolux, AEG and Frigidaire brands, plus professional kitchen equipment for restaurants and food service. Its franchise rests on scale in European appliance distribution and a broad brand portfolio that gives it shelf space with retailers. The current setup is a cyclical recovery story, with revenue growth of just 0.9% and an operating margin of -3.2% on a 14.1% gross margin, so the thesis hinges on whether cost cuts and restructuring can close that gap before demand returns. Negative ROE of -11.4% and the absence of earnings-based multiples mean the company is unprofitable on a reported basis, which puts the debate on margin repair and cash generation rather than on valuation. A deeper look should focus on the restructuring savings delivered so far, the trajectory of gross margin relative to the 14.1% level, and how sensitive the professional products division is to restaurant capex.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
severe
Negative free cash flow
Free cash flow is $-1,121,000,000 against a SEK 22.7B market cap, so the business is burning cash and any dividend or buyback is funded by the balance sheet.
high
Negative return on equity
ROE of -11.4% and an operating margin of -3.2% mean the core business is currently loss-making, despite a gross margin of 14.1%.
high
Heavy leverage
Debt/Equity of 5.00 leaves little room for error if sales stall, with revenue growth at just +0.9% year on year.
moderate
Earnings jump masks weak sales
Earnings are up 204.3% year on year while revenue grew only 0.9%, so the improvement looks driven by a low base or one-off items rather than underlying growth.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 0.9% over the last year and has averaged 2.5% a year over five years, so the top line is not shrinking.
Model fair value of kr 42.53 sits well above the kr 28.60 share price, and three of four valuation models support that view.
The share price implies cash flow growth of 12.8% a year forever, a demanding bar that the business could clear if margins recover.
Why it could disappoint
The company lost money over the last year, with a net margin of -1.1% and return on equity of -11.4%.
Free cash flow was negative SEK 1.1B over the last twelve months, so the business is consuming cash rather than generating it.
Debt is five times equity and the share count rose 1.9%, so shareholders carry more leverage and dilution while earnings are negative.
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Valuation
INVESTOR
Where ELUX-A.ST's valuation models land
Price
kr 28.60
Model fair value
kr 42.53
Model range
kr 21.09 to kr 76.28
Fair value kr 42.53
Price kr 28.60
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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Analysts
Wall Street consensus
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