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If you are wondering whether Wärtsilä Oyj Abp is still good value after its strong run, or if the share price has already priced in the good news, this article walks through what the numbers are saying about valuation right now.
The stock last closed at €32.79, with returns of 7.8% over the past month, 5.5% year to date and a 1 year return of 86.9%, along with a 3 year gain of 286.6% and a very large 5 year gain.
Recent coverage around Wärtsilä has focused on how the company is positioned in capital goods and energy related markets, alongside broader interest in industrial names listed in Helsinki. This context has put extra attention on whether the current share price still lines up with underlying fundamentals or has moved ahead of itself.
Simply Wall St currently assigns Wärtsilä a valuation score of 0 out of 6. Next, we look at how traditional approaches like DCFs and multiples compare, before finishing with a more rounded way to think about what the stock might be worth.
Wärtsilä Oyj Abp scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow, or DCF, model takes projected future cash flows and discounts them back to today, to estimate what the entire business might be worth in € right now.
For Wärtsilä Oyj Abp, the latest twelve month free cash flow is about €1,210.9 million. The model being used is a 2 Stage Free Cash Flow to Equity approach, which combines analyst estimates for the next few years with longer term projections extrapolated by Simply Wall St.
Looking ahead, the model includes a projected free cash flow of €914.0 million in 2030, with a detailed path of yearly forecasts out to 2035. All of these future cash flows are discounted back to today and summed, which gives an estimated intrinsic value of €28.99 per share.
Compared with the recent share price of €32.79, this DCF outcome suggests the stock is about 13.1% overvalued on these assumptions. In other words, the current price sits above what this particular cash flow model indicates.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Wärtsilä Oyj Abp may be overvalued by 13.1%. Discover 873 undervalued stocks or create your own screener to find better value opportunities.
WRT1V Discounted Cash Flow as at Jan 2026
Story Continues
For a profitable company, the P/E ratio is a straightforward way to link what you pay per share to the earnings that each share generates. It helps you see how many years of current earnings you are effectively paying for at the current price.
What counts as a “normal” or “fair” P/E depends on how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while slower growth or higher risk usually points to a lower one.
Wärtsilä Oyj Abp currently trades on a P/E of about 32.16x. That is above the Machinery industry average of roughly 24.76x and also above the peer average of about 23.31x. Simply Wall St’s Fair Ratio for Wärtsilä is 25.17x, which is its proprietary view of what the P/E “should” be, based on factors such as earnings growth, profit margins, industry, market cap and specific risks.
Compared with simple peer or industry comparisons, the Fair Ratio aims to be more tailored because it adjusts for those company specific drivers. Setting the current P/E of 32.16x against the Fair Ratio of 25.17x suggests that, on this metric, the shares are pricing in more than the model implies.
Result: OVERVALUED
HLSE:WRT1V P/E Ratio as at Jan 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1429 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to think about valuation, so let us introduce you to Narratives, which are simply your story about a company, linked directly to your numbers such as fair value, future revenue, earnings and margins.
On Simply Wall St’s Community page, Narratives let you connect your view of Wärtsilä Oyj Abp with a clear forecast and a fair value estimate, in a format that is easy to set up and compare with other investors.
You can then line up your Narrative fair value against the current share price to help decide whether you see the stock as attractive, fully priced or expensive, and your view automatically refreshes when new information like earnings or news is added to the platform.
For example, one investor might build a Wärtsilä Narrative that leads to a much higher fair value than today’s price, while another might use more conservative assumptions and reach a far lower value. Seeing both side by side can help you decide which story fits your own expectations.
Do you think there’s more to the story for Wärtsilä Oyj Abp? Head over to our Community to see what others are saying!
HLSE:WRT1V 1-Year Stock Price Chart
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.
Companies discussed in this article include WRT1V.HE.
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