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Atlas Copco AB (ATCO-A) Fair Value & Analysis

Industrials · SE · Market cap 939B SEK (≈ $97.9B) · ISIN SE0017486889

AC Atlas Copco AB ATCO-A · ST
Pricekr 207.90
Fair Valuekr 112.59
Upside-45.8%
Quality70/100
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Strengths

Solidly profitable · 15.7% net margin
Low debt · generates free cash flow
Wide moat 73/100

Risks

!Trades 85% ABOVE our fair value of kr 112.59
!Mixed Growth (revenue 5y +11.0 %/yr)
!Mixed vs. peers (8/15)
Mixed Growth (revenue 5y +11.0 %/yr)
Solidly profitable · 15.7% net margin
Low debt · generates free cash flow
2.41% dividend yield
Mixed vs. peers (8/15)
Wide moat 73/100
Evidence: High Range kr 70.43 – kr 142.32 Share as image

Fair value as of: Aug 27, 2026

From 24 valuation models · updated 3 days ago

Share price +7.1% over the past month.

A solid business, but trading 85% above our fair value.

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What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (kr 142.32). The favourable scenario is already priced in.
  • A fairly wide model range (kr 70.43 to kr 142.32) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

kr 211.50 kr 85.95 Fair Value kr 112.59 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range kr 85.95 – kr 211.50 · fair‑value band kr 70.43 – kr 142.32 · the kr 207.90 price screens above the kr 112.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Atlas Copco AB (ATCO-A) currently trades at kr 207.90, while our model-based Fair Value estimate is kr 112.59, implying the stock looks roughly 45.8% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Atlas Copco AB generated revenue of 166B SEK at a net margin of 15.7%. Revenue declined 5.1% year over year. It earns a return on equity of 22.4%. Net debt stands at 19.4B SEK. Fundamentals as of Aug 27, 2026

Our scenario range runs from kr 70.43 (bear case) to kr 142.32 (bull case); at kr 207.90, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 49% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -52% fair-value upside, at -46%, ATCO-A screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly 0.31 SEK per share, which is 0.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF kr 69.23 kr 113.64 kr 186.05 77
Growth DCF kr 70.48 kr 109.63 kr 169.37 76
Owner Earnings kr 77.68 kr 127.41 kr 208.49 74
All 24 models by family
DCF Models
FCF DCF kr 69.23 kr 113.64 kr 186.05 77
Owner Earnings kr 77.68 kr 127.41 kr 208.49 74
5Y Revenue Exit kr 49.87 kr 77.94 kr 113.53 71
5Y EBITDA Exit kr 75.01 kr 125.62 kr 185.17 73
5Y P/E Exit kr 73.10 kr 122.00 kr 173.86 69
10Y Revenue Exit kr 54.52 kr 82.36 kr 119.59 66
10Y EBITDA Exit kr 72.41 kr 116.48 kr 176.26 67
10Y P/E Exit kr 71.16 kr 113.89 kr 167.32 62
Earnings-Based
Graham-Dodd kr 36.87 kr 122.25 kr 163.58 62
Lynch FV kr 27.63 kr 39.47 kr 51.31 58
PEG = 1.0 kr 27.63 kr 39.47 kr 51.31 55
EPV kr 54.94 kr 64.89 kr 73.74 72
Multiples
P/E Multiple kr 85.39 kr 113.86 kr 142.32 61
P/S Multiple kr 51.82 kr 69.09 kr 86.37 56
P/B Multiple kr 69.13 kr 92.17 kr 115.21 53
EV/EBIT kr 89.41 kr 119.71 kr 150.01 65
EV/EBITDA kr 87.09 kr 116.62 kr 146.14 66
EV/Revenue kr 42.04 kr 60.70 kr 79.35 52
Asset-Based
NCAV (Graham) kr 11.31 kr 15.15 kr 22.62 52
Growth DCF
Growth DCF kr 70.48 kr 109.63 kr 169.37 76
Rev-Margin DCF kr 49.87 kr 78.29 kr 111.69 71
Economic Profit
Residual Income kr 37.27 kr 50.11 kr 270.63 63
ROIC Compounder kr 59.63 kr 77.00 kr 97.59 71
Growth Earnings
Growth-Adj P/E kr 72.20 kr 103.14 kr 134.09 66

Widest divergence: DCF Models (kr 113.89) versus Asset-Based (kr 15.15). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 33.6 as of Jun 7, 2026
P/S ratio 5.27 P/E × margin
EPS (TTM) kr 5.34 price ÷ EPS = P/E 33.6
Dividend yield 2.4% payout 93.6%
Net margin 15.7% FY2025
Return on equity 22.4% TTM
More key figures
Profitability
Return on assets (EBIT) 18.2% avg 5y
Operating margin 20.4% TTM
Growth
Revenue (TTM) 166B SEK TTM
Revenue growth (YoY) -5.1% 3y avg +6.0%
EPS growth (YoY) -5.2%
Balance sheet & cash flow
Free cash flow 28.3B SEK FY2025
Net debt 19.4B SEK FY2025 · ≈ 0.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 69 · Market factors (momentum, volatility) 71

Profitability 71
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 69
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 90
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Atlas Copco AB (publ) provides compressed air and gas, air treatment systems, vacuum, industrial power tools and assembly systems, machine vision, and power and flow solutions in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania.

Full company description

Atlas Copco AB (publ) provides compressed air and gas, air treatment systems, vacuum, industrial power tools and assembly systems, machine vision, and power and flow solutions in North America, South America, Europe, Africa, the Middle East, Asia, and Oceania. It operates through Compressor Technique, Vacuum Technique, Industrial Technique, and Power Technique segments. The company offers piston compressors, oil-free tooth and scroll compressors, rotary screw compressors, oil-free blowers, oil-free centrifugal compressors, gas and process compressors, air and gas treatment equipment, expanders and pumps, and medical air solutions. It also provides oil-sealed rotary vane, dry, and liquid ring vacuum pumps; turbomolecular and cryogenic pumps; abatement and integrated systems; industrial assembly tools and solutions; self-pierce riveting solutions; adhesive dispensing and flow drill fastening equipment; material removal tools, and drills and other pneumatic products; machine vision solutions; construction and demolition tools; mobile compressors, generators, and energy storage systems; and industrial flow, portable power, portable flow, and portable air products, as well as specialty rental services. The company serves the semiconductor and flat panel, industrial manufacturing, civil engineering, demolition, exploration drilling, automotive, off-highway vehicle producers, electronics, aerospace, energy, food, pharmaceutical, textile, and other industries. Atlas Copco AB (publ) was founded in 1873 and is headquartered in Nacka, Sweden.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Atlas Copco AB reported revenue of kr 168B in FY2025 versus kr 111B in FY2021, a compound +11.0%/yr. Reported net income was kr 26.4B in FY2025, compounding +9.9%/yr from FY2021.

Growth Quality 87/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
168B SEK
Latest YoY
−4.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.0%
Avg. revenue growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+12.2% (9.8 + 2.4)
Revenue +11.0%/yr
FY21 kr 111B
FY22 kr 141B
FY23 kr 173B
FY24 kr 177B
FY25 kr 168B
Net income +9.9%/yr
FY21 kr 18.1B
FY22 kr 23.5B
FY23 kr 28.0B
FY24 kr 29.8B
FY25 kr 26.4B
Character of growth · EPS growth decomposed (2014-2025) +9.9 % p.a.
Revenue per share +6.3 %

of which total revenue +6.4 % · buybacks/dilution +0.0 %

EBIT margin +1.3 %
Tax rate +1.4 %
Residual (interest, one-offs) +0.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ATCO-A screens 85% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Atlas Copco AB Fair Value". https://www.fairvalue-calculator.com/stock/ATCO-A

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Industrial Machinery · 808 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%
Fair Value upside −46% · Below median
Return on equity (TTM) 26% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 0.21× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 33.6× · Pricier than median
P/B 8.52× · Pricier than 75% of peers
P/S (TTM) 5.53× · Pricier than 75% of peers
P/FCF 3.5× · Cheaper than median
EV/EBITDA 22.4× · Pricier than median
PEG 2.89× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE46 · sector 20
PAST100 · sector 28
HEALTH90 · sector 96
DIVIDEND48 · sector 28

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc GEV $953.09 $131.95 -86%
SIE SIE €289.85 €139.77 -52%
Eaton Corporation ETN $402.78 $168.65 -58%
Parker-Hannifin Corporation PH $995.02 $398.69 -60%
Cummins Inc CMI $578.14 $348.94 -40%
Illinois Tool Works Inc ITW $281.67 $145.84 -48%
Emerson Electric Co EMR $155.18 $58.44 -62%
AMETEK, Inc AME $236.25 $125.80 -47%
Rockwell Automation, Inc ROK $431.75 $125.76 -71%
Sandvik AB SAND kr 394.10 kr 193.01 -51%

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Frequently asked questions

Is Atlas Copco AB (ATCO-A) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of kr 112.59 versus a price of kr 207.90, about −46% (overvalued).
What is the fair value of ATCO-A?
Our model-based fair value for Atlas Copco AB is kr 112.59 (as of Aug 27, 2026), built from audited fundamentals. The current price: kr 207.90.
What is the quality score of ATCO-A?
Atlas Copco AB has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Atlas Copco AB (ATCO-A)?
Atlas Copco AB reported trailing-twelve-month revenue of about 166B SEK (latest available figure, as of Aug 27, 2026).
What is the net profit margin of ATCO-A?
The net profit margin of Atlas Copco AB is about 15.7%, meaning it keeps roughly 15.7% of revenue as net income. Based on the latest reported figures.
Does Atlas Copco AB pay a dividend?
Atlas Copco AB currently shows a dividend yield of about 2.41% relative to its recent price (as of Aug 27, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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