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Essity AB (ESSITY-B) Fair Value & Analysis

Consumer Defensive · SE · Market cap 189B SEK (≈ $19.7B) · ISIN SE0009922164

EA Essity AB ESSITY-B · ST
Pricekr 280.20
Fair Valuekr 250.02
Upside-10.8%
Quality64/100
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Strengths

Low debt · generates free cash flow

Risks

!Trades 12% ABOVE our fair value of kr 250.02
!Weak Growth (revenue 5y +2.6 %/yr)
!Thin margins · 9.1% net margin
!Mixed vs. peers (8/15)
Weak Growth (revenue 5y +2.6 %/yr)
Thin margins · 9.1% net margin
Low debt · generates free cash flow
3.12% dividend yield
Mixed vs. peers (8/15)
Moderate moat 62/100
Evidence: High Range kr 190.24 – kr 379.41 Share as image

Fair value as of: Aug 27, 2026

From 22 valuation models · updated 3 days ago

Share price +0.3% over the past month.

A solid business, but trading 12% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • A fairly wide model range (kr 190.24 to kr 379.41) leaves room in how you read the outcome.
  • Our model range runs from kr 190.24 (bear) to kr 379.41 (bull), base kr 250.02. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 64/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

kr 304.04 kr 188.69 Fair Value kr 250.02 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 188.69 – kr 304.04 · fair‑value band kr 190.24 – kr 379.41 · the kr 280.20 price screens above the kr 250.02 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

Essity AB (ESSITY-B) currently trades at kr 280.20, while our model-based Fair Value estimate is kr 250.02, implying the stock looks roughly 10.8% overvalued today. The Quality Score stands at 64/100 (solid quality), in the Consumer Defensive 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, Essity AB generated revenue of 137B SEK at a net margin of 9.1%. Revenue declined 5.1% year over year. It earns a return on equity of 14.9%. Net debt stands at 30.1B SEK. Fundamentals as of Aug 27, 2026

Our scenario range runs from kr 190.24 (bear case) to kr 379.41 (bull case); at kr 280.20, the current price sits within 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 about 1% below its 52-week high and 23% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -36% fair-value upside, at -11%, ESSITY-B 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 6.28 SEK per share, which is 2.5 % 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 94.24 kr 136.61 kr 222.36 75
Growth DCF kr 99.15 kr 140.73 kr 217.60 74
Owner Earnings kr 157.77 kr 222.19 kr 352.54 72
All 22 models by family
DCF Models
FCF DCF kr 94.24 kr 136.61 kr 222.36 75
Owner Earnings kr 157.77 kr 222.19 kr 352.54 72
5Y Revenue Exit kr 139.70 kr 226.79 kr 357.99 68
5Y EBITDA Exit kr 213.55 kr 351.96 kr 541.20 71
5Y P/E Exit kr 173.66 kr 284.35 kr 420.59 67
10Y Revenue Exit kr 115.36 kr 188.86 kr 273.68 63
10Y EBITDA Exit kr 166.41 kr 271.39 kr 392.16 65
10Y P/E Exit kr 141.94 kr 226.81 kr 314.17 61
Earnings-Based
Graham-Dodd kr 124.91 kr 204.40 kr 247.41 62
EPV kr 166.87 kr 199.33 kr 227.73 72
Multiples
P/E Multiple kr 289.32 kr 385.76 kr 482.20 61
P/S Multiple kr 234.21 kr 312.28 kr 390.35 56
P/B Multiple kr 234.21 kr 312.28 kr 390.35 53
EV/EBIT kr 315.06 kr 429.37 kr 543.68 64
EV/EBITDA kr 335.65 kr 456.83 kr 578.00 66
EV/Revenue kr 183.19 kr 273.65 kr 364.11 52
Asset-Based
NCAV (Graham) kr 62.14 kr 83.27 kr 124.28 52
Growth DCF
Growth DCF kr 99.15 kr 140.73 kr 217.60 74
Rev-Margin DCF kr 139.70 kr 229.46 kr 341.87 69
Economic Profit
Residual Income kr 123.60 kr 160.73 kr 420.00 64
ROIC Compounder kr 168.96 kr 207.06 kr 250.12 69
Growth Earnings
Growth-Adj P/E kr 204.30 kr 291.85 kr 379.41 64

Widest divergence: Multiples (kr 312.28) versus Asset-Based (kr 83.27). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 14.1 as of Jun 8, 2026
P/S ratio 1.29 P/E × margin
EPS (TTM) kr 18.18 price ÷ EPS = P/E 14.1
Dividend yield 3.1% payout 48.1%
Net margin 9.1% FY2025
Return on equity 14.9% TTM
More key figures
Profitability
Return on assets (EBIT) 8.3% avg 5y
Operating margin 13.1% TTM
Growth
Revenue (TTM) 137B SEK TTM
Revenue growth (YoY) -5.1% 3y avg -3.9%
EPS growth (YoY) -4.3%
Balance sheet & cash flow
Free cash flow 8.4B SEK FY2025
Net debt 30.1B SEK FY2025 · ≈ 3.6 yrs of FCF

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

Quality Score breakdown

Overall quality 64/100

Of which business quality 61 · Market factors (momentum, volatility) 68

Profitability 53
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 41
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 93
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

Essity AB (publ) develops, produces, and sells hygiene and health products and services in Europe, North and Latin America, Asia, and internationally. The company operates through three segments: Health & Medical, Consumer Goods, and Professional Hygiene.

Full company description

Essity AB (publ) develops, produces, and sells hygiene and health products and services in Europe, North and Latin America, Asia, and internationally. The company operates through three segments: Health & Medical, Consumer Goods, and Professional Hygiene. The Health & Medical segment offers incontinence products, wound care, compression therapy, orthopedics, skincare products, and digital solutions with sensor technology under the TENA, Leukoplast, JOBST, Actimove, Cutimed, Delta-Cast, AquaCast Liner, and Hydrofera brands to family carers, professional caregivers, and patients and consumers through pharmacies, medical device stores, hospitals, distributors, care institutions, and e-commerce. The Consumer Goods segment provides pads, panty liners, tampons, diapers, wet wipes, shampoos, lotions, baby oil, skin creams, intimate soaps, intimate wipes, leakproof apparel, menstrual cups, toilet papers, household towels, handkerchiefs, facial tissues, and napkins under the TENA, Knix, Modibodi, Libero, Lotus, Libresse, Bodyform, Nana, Saba, Nosotras, TOM Organic, Tempo, Zewa, Cushelle, Plenty, Regio, and Familia brands through retail trade and e-commerce. The Professional Hygiene segment offers toilet papers, paper hand towels, napkins, hand soaps, hand lotions, hand sanitizers, dispensers, and cleaning and wiping products, as well as vision cleaning and data-driven cleaning solutions under the Tork brand to companies and office buildings, universities, healthcare facilities, airports, industries, restaurants, hotels, stadiums, and other public venues through direct to the end-customer, e-commerce, or distributors. Essity AB (publ) was founded in 1849 and is headquartered in Stockholm, Sweden.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Essity AB reported revenue of kr 138B in FY2025 versus kr 122B in FY2021, a compound +3.2%/yr. Reported net income was kr 12.7B in FY2025, compounding +10.1%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
138B 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.
−3.9%
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.
+2.6%
Avg. revenue growth/yr (11Y) 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.
+4.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year.
+8.8% (5.7 + 3.1)
Revenue +3.2%/yr
FY21 kr 122B
FY22 kr 156B
FY23 kr 147B
FY24 kr 146B
FY25 kr 138B
Net income +10.1%/yr
FY21 kr 8.6B
FY22 kr 5.6B
FY23 kr 9.6B
FY24 kr 20.9B
FY25 kr 12.7B
Character of growth · EPS growth decomposed (2014-2025) +12.4 % p.a.
Revenue per share +4.7 %

of which total revenue +4.6 % · buybacks/dilution +0.1 %

EBIT margin +3.4 %
Tax rate +2.1 %
Residual (interest, one-offs) +1.8 %

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).

ESSITY-B screens 12% overvalued. Compare with L'Oréal S.A →

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Cite: Fair Value Calculator (2026). "Essity AB Fair Value". https://www.fairvalue-calculator.com/stock/ESSITY-B

Earlier news

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

Peer Group

Household & Personal Products · 251 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 64 · Above median
Fair Value upside −11% · Below median
Return on equity (TTM) 15% · Above median
Return on assets 7% · Above median
Net margin (TTM) 9% · Above median
Operating margin (TTM) 13% · Above median
Revenue growth -5% · Bottom 25%
Dividend yield (TTM) 3.1% · Above median
Debt / equity 0.32× · Higher than 75% of peers

Valuation Multiples vs Household & Personal Products median · lower = cheaper

P/E (TTM) 14.1× · Cheaper than median
P/B 2.20× · Pricier than median
P/S (TTM) 1.38× · Pricier than median
P/FCF 2.4× · Pricier than median
EV/EBITDA 8.5× · Cheaper than median
PEG 3.60× · 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
VALUE19 · sector 29
FUTURE0 · sector 8
PAST60 · sector 27
HEALTH84 · sector 98
DIVIDEND62 · sector 55

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 Household & Personal Products stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
L'Oréal S.A LORL C$24.76 C$22.64 -9%
Unilever PLC UNA €55.92 €40.47 -28%
Colgate-Palmolive Company CL $90.75 $55.28 -39%
500696 500696 ₹2,093 ₹641.55 -69%
Hindustan Unilever Limited HINDUNILVR ₹2,015 ₹789.46 -61%
Kenvue Inc KVUE $18.98 $10.97 -42%
Kimberly-Clark Corporation KMB $109.55 $79.71 -27%
Henkel AG HEN3 €75.82 €85.95 +13%
The Estée Lauder Companies Inc ESLA €86.54 €18.84 -78%
Church & Dwight Co CHD $101.26 $65.12 -36%

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Frequently asked questions

Is Essity AB (ESSITY-B) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of kr 250.02 versus a price of kr 280.20, about −11% (overvalued).
What is the fair value of ESSITY-B?
Our model-based fair value for Essity AB is kr 250.02 (as of Aug 27, 2026), built from audited fundamentals. The current price: kr 280.20.
What is the quality score of ESSITY-B?
Essity AB has a Quality Score of 64/100. 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 Essity AB (ESSITY-B)?
Essity AB reported trailing-twelve-month revenue of about 137B SEK (latest available figure, as of Aug 27, 2026).
What is the net profit margin of ESSITY-B?
The net profit margin of Essity AB is about 9.1%, meaning it keeps roughly 9.1% of revenue as net income. Based on the latest reported figures.
Does Essity AB pay a dividend?
Essity AB currently shows a dividend yield of about 3.12% 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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