Essity AB (publ) (ESSITY-B.ST) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+124.2%

SEK 628.31

vs SEK 280.20 price

Levered DCF

SEK 264.31

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

3.02

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	14.44×	9.91×	18.38×	34.46×	24.07×	18.17×	23×	19.43×
P/B	2.13×	2.34×	2.48×	2.85×	3.47×	3.42×	3.92×	3.25×
P/S	1.32×	1.42×	1.19×	1.23×	1.7×	1.53×	1.64×	1.29×
EV / EBITDA	8.24×	9.18×	10.63×	16.79×	13.49×	9.27×	11.86×	11.64×
Gross margin	33.3%	32.4%	30.7%	23.8%	28.8%	32.4%	29.4%	27.0%
Operating margin	13.4%	12.6%	12.1%	6.1%	10.8%	13.8%	11.1%	9.1%
Net margin	9.1%	14.4%	6.5%	3.6%	7.1%	8.4%	7.1%	6.7%
Current ratio	1.33×	1.43×	1.02×	1.13×	1.09×	1.05×	0.97×	1.01×
Debt / equity	0.44×	0.5×	0.86×	1.06×	0.97×	0.84×	0.94×	1.13×
Interest coverage	12.68×	8.06×	17.45×	6.46×	17.34×	15.47×	10.16×	8.68×
Dividend yield	3.1%	2.6%	2.9%	2.6%	2.3%	2.4%	1.9%	2.6%
Payout ratio	45.1%	26.1%	53.3%	88.3%	55.0%	42.9%	43.8%	51.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.8%	23.7%	13.5%	8.3%	14.4%	18.8%	17.0%	16.7%
Return on invested capital	10.3%	9.2%	8.0%	4.4%	7.4%	10.2%	8.8%	7.8%
Return on assets	7.6%	11.3%	4.7%	2.6%	4.9%	6.6%	5.7%	5.1%
Free cash flow yield	4.6%	4.5%	8.4%	3.9%	3.5%	6.0%	6.3%	4.1%
Earnings yield	6.9%	10.1%	5.4%	2.9%	4.2%	5.5%	4.3%	5.1%
Enterprise value	SEK 212.1B	SEK 239.9B	SEK 231.4B	SEK 259.2B	SEK 261.8B	SEK 226.7B	SEK 260B	SEK 203.6B
Net debt / EBITDA	1.14×	1.26×	2.56×	4.35×	2.8×	1.67×	2.19×	2.88×
Cash conversion cycle (days)	80	72	83	94	86	64	60	59