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Norsk Hydro ASA (NHY) Fair Value & Analysis

Basic Materials · NO · Market cap 167B NOK

NH Norsk Hydro ASA NHY · OL
Pricekr 89.64
Fair Valuekr 58.10
Upside-35.2%
Quality67/100
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Healthy Growth
Thin margins · 3.0% net margin
Low debt · generates free cash flow
3.53% dividend yield
Mixed vs. peers (7/15)
Moderate moat 52/100
Evidence: Medium Range kr 43.58 – kr 72.63 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Share price +3.9% over the past month.

A solid business, but screening 35% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (kr 72.63). The favourable scenario is already priced in.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

kr 119.45 kr 39.24 Fair Value kr 58.10 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range kr 39.24 – kr 119.45 · fair‑value band kr 43.58 – kr 72.63 · the kr 89.64 price screens above the kr 58.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Norsk Hydro ASA (NHY) currently trades at kr 89.64, while our model-based Fair Value estimate is kr 58.10, implying the stock looks roughly 35.2% overvalued today. We read business quality at 67/100 (solid quality), in the Basic Materials 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: medium).

Over the trailing twelve months, Norsk Hydro ASA generated revenue of 201B NOK at a net margin of 3.0%. Revenue declined 11.7% year over year. It earns a return on equity of 6.2%. Net debt stands at 20.5B NOK. Fundamentals as of Jul 18, 2026

Our scenario range runs from kr 43.58 (bear case) to kr 72.63 (bull case); at kr 89.64, 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 about 23% below its 52-week high and 73% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 44% fair-value upside, at -35%, NHY screens richer than that median.

Fair Value models

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 BearBaseBull Evidence
Highest evidence
Growth DCF kr 60.83 kr 90.41 kr 131.76 80
Residual Income kr 41.21 kr 43.38 kr 45.78 76
Rev-Margin DCF kr 57.66 kr 93.81 kr 133.92 74
All 26 models by family
DCF Models
FCF DCF kr 59.29 kr 91.89 kr 139.95 38
Owner Earnings kr 30.68 kr 49.06 kr 76.14 31
5Y Revenue Exit kr 57.66 kr 93.44 kr 138.21 39
5Y EBITDA Exit kr 90.01 kr 152.41 kr 223.86 41
5Y P/E Exit kr 46.19 kr 72.54 kr 99.20 38
10Y Revenue Exit kr 55.67 kr 88.11 kr 129.79 36
10Y EBITDA Exit kr 78.06 kr 128.49 kr 193.62 37
10Y P/E Exit kr 50.41 kr 73.80 kr 100.73 35
Earnings-Based
Graham-Dodd kr 23.24 kr 63.09 kr 82.69 54
Lynch FV kr 12.42 kr 17.74 kr 23.06 50
PEG = 1.0 kr 12.42 kr 17.74 kr 23.06 46
EPV kr 44.99 kr 53.53 kr 61.01 59
Dividend Discount
Gordon GGM kr 21.40 kr 44.50 kr 70.60 70
DDM Multi-Stage kr 21.40 kr 33.43 kr 46.21 61
Multiples
P/E Multiple kr 51.27 kr 68.36 kr 85.45 63
P/S Multiple kr 43.58 kr 58.10 kr 72.63 58
P/B Multiple kr 43.58 kr 58.10 kr 72.63 55
EV/EBIT kr 92.65 kr 125.62 kr 158.59 53
EV/EBITDA kr 122.10 kr 164.89 kr 207.69 54
EV/Revenue kr 60.40 kr 88.98 kr 117.56 43
Asset-Based
NCAV (Graham) kr 25.40 kr 34.04 kr 50.80 50
Growth DCF
Growth DCF kr 60.83 kr 90.41 kr 131.76 80
Rev-Margin DCF kr 57.66 kr 93.81 kr 133.92 74
Economic Profit
Residual Income kr 41.21 kr 43.38 kr 45.78 76
ROIC Compounder kr 44.99 kr 54.88 kr 69.18 72
Growth Earnings
Growth-Adj P/E kr 40.70 kr 58.14 kr 75.58 68

Widest divergence: Growth DCF (kr 90.41) versus Earnings-Based (kr 17.74). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 201B NOK
Revenue growth (YoY) -11.7%
Net margin 3.0%
Return on equity 6.2%
Free cash flow 11.7B NOK FY2025
P/E ratio 27.2
More key figures
Operating margin 20.5%
EPS (TTM) kr 3.12
Dividend yield 3.5%
EPS growth (YoY) -11.9%
Net debt 20.5B NOK FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 63 · Market factors (momentum, volatility) 64

Profitability 46
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 69
Distance to the 52-week high (market factor)
Net Issuance 97
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.

About the company

Norsk Hydro ASA engages in power production, bauxite extraction, alumina refining, aluminum smelting, recycling activities, and extruded solutions worldwide. The company operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments.

Full company description

Norsk Hydro ASA engages in power production, bauxite extraction, alumina refining, aluminum smelting, recycling activities, and extruded solutions worldwide. The company operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Hydro Metal Markets segment sells products from the company's primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar. The company also provides extruded solutions. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Norsk Hydro ASA reported revenue of kr 208B in FY2025 versus kr 150B in FY2021, a compound +8.6%/yr. Reported net income was kr 6.7B in FY2025, compounding −13.8%/yr from FY2021.

Growth Quality 72/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
208B NOK
Latest YoY
+2.1%
Avg. growth/yr (3Y)
+0.0%
Avg. growth/yr (5Y)
+8.5%
Avg. growth/yr (40Y)
+3.8%
Revenue +8.6%/yr
FY21 kr 150B
FY22 kr 208B
FY23 kr 192B
FY24 kr 204B
FY25 kr 208B
Net income −13.8%/yr
FY21 kr 12.2B
FY22 kr 24.2B
FY23 kr 3.6B
FY24 kr 5.8B
FY25 kr 6.7B

NHY screens 35% overvalued. Compare with Shandong Hongqiao Aluminum Industry Holding →

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Cite: Fair Value Calculator (2026). "Norsk Hydro ASA Fair Value". https://www.fairvalue-calculator.com/stock/NHY

Earlier news

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

Peer Group

Aluminum · 83 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 67 · Top 25%
Fair Value upside −35% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 11% · Top 25%
Net margin (TTM) 3% · Below median
Operating margin (TTM) 21% · Top 25%
Revenue growth -12% · Bottom 25%
Dividend yield (TTM) 3.5% · Top 25%
Debt / equity 0.29× · Higher than median

Valuation Multiples vs Aluminum median · lower = cheaper

P/E (TTM) 27.2× · Pricier than median
P/B 1.67× · Pricier than median
P/S (TTM) 0.83× · Pricier than median
P/FCF 1.5× · Cheaper than median
EV/EBITDA 3.8× · Cheaper than 75% of peers
PEG 0.56× · Cheaper 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.

VALUE 0 · sector 17
FUTURE 0 · sector 25
PAST 25 · sector 32
HEALTH 86 · sector 91
DIVIDEND 71 · sector 35

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

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aluminum stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

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Frequently asked questions

Is Norsk Hydro ASA (NHY) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of kr 58.10 versus a price of kr 89.64, about −35% (overvalued).
What is the fair value of NHY?
Our model-based fair value for Norsk Hydro ASA is kr 58.10 (as of Jul 18, 2026), built from audited fundamentals. The current price is kr 89.64.
What is the quality score of NHY?
Norsk Hydro ASA has a Quality Score of 67/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Norsk Hydro ASA (NHY)?
Norsk Hydro ASA reported trailing-twelve-month revenue of about 201B NOK (latest available figure, as of Jul 18, 2026).
What is the net profit margin of NHY?
The net profit margin of Norsk Hydro ASA is about 3.0%, meaning it keeps roughly 3.0% of revenue as net income. Based on the latest reported figures.
Does Norsk Hydro ASA pay a dividend?
Norsk Hydro ASA currently shows a dividend yield of about 2.64% relative to its recent price (as of Jul 18, 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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