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Sleep Cycle AB (SLEEP) Fair Value & Analysis

Technology · SE · Market cap 502M SEK

SC Sleep Cycle AB SLEEP · ST
Pricekr 23.50
Fair Valuekr 52.48
Upside+123.3%
Quality82/100
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Mixed Growth
Solidly profitable · 19.1% net margin
generates free cash flow
2.14% dividend yield
Ranks above peers (10/13)
Wide moat 76/100
Evidence: High Range kr 38.28 – kr 65.60 Share as image

Fair value as of: Jul 19, 2026

From 24 valuation models · updated 22 days ago

Share price −4.3% over the past month.

A strong business, screening 123% undervalued on our models.

What matters now

  • The rarer combination: high quality (82/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (kr 38.28). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

kr 78.28 kr 14.77 Fair Value kr 52.48 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range kr 14.77 – kr 78.28 · fair‑value band kr 38.28 – kr 65.60 · the kr 23.50 price screens below the kr 52.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Sleep Cycle AB (SLEEP) currently trades at kr 23.50, while our model-based Fair Value estimate is kr 52.48, implying the stock looks roughly 123.3% undervalued today. The Quality Score stands at 82/100 (high quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Sleep Cycle AB generated revenue of 236M SEK at a net margin of 19.1%. Revenue declined 19.0% year over year. It earns a return on equity of 52.7%. The balance sheet holds a net cash position of 113M SEK. Fundamentals as of Jul 19, 2026

Our scenario range runs from kr 38.28 (bear case) to kr 65.60 (bull case); at kr 23.50, the current price sits below 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 38% below its 52-week high and 60% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at 123%, SLEEP screens cheaper 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 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
Residual Income kr 17.00 kr 29.27 kr 610.67 76
Growth DCF kr 33.26 kr 49.73 kr 73.49 72
Growth-Adj P/E kr 34.33 kr 49.05 kr 63.76 68
All 24 models by family
DCF Models
FCF DCF kr 33.73 kr 52.57 kr 81.58 38
Owner Earnings kr 37.07 kr 58.18 kr 90.69 31
5Y Revenue Exit kr 29.41 kr 45.42 kr 66.92 39
5Y EBITDA Exit kr 37.42 kr 62.00 kr 92.85 41
5Y P/E Exit kr 38.87 kr 64.99 kr 94.94 38
10Y Revenue Exit kr 30.10 kr 45.05 kr 67.51 36
10Y EBITDA Exit kr 35.58 kr 56.17 kr 87.41 37
10Y P/E Exit kr 36.46 kr 58.17 kr 89.02 35
Earnings-Based
Graham-Dodd kr 17.84 kr 84.16 kr 115.72 54
Lynch FV kr 22.32 kr 31.88 kr 41.45 50
PEG = 1.0 kr 22.32 kr 31.88 kr 41.45 46
EPV kr 28.31 kr 31.35 kr 33.89 59
Multiples
P/E Multiple kr 39.36 kr 52.48 kr 65.60 63
P/S Multiple kr 22.92 kr 30.56 kr 38.20 58
P/B Multiple kr 7.97 kr 10.63 kr 13.28 55
EV/EBIT kr 52.93 kr 68.58 kr 84.24 53
EV/EBITDA kr 42.81 kr 55.09 kr 67.37 54
EV/Revenue kr 27.35 kr 36.52 kr 45.69 43
Asset-Based
NCAV (Graham) kr 1.77 kr 2.37 kr 3.54 50
Growth DCF
Growth DCF kr 33.26 kr 49.73 kr 73.49 72
Rev-Margin DCF kr 29.41 kr 45.17 kr 65.65 67
Economic Profit
Residual Income kr 17.00 kr 29.27 kr 610.67 76
ROIC Compounder kr 28.31 kr 31.35 kr 33.89 67
Growth Earnings
Growth-Adj P/E kr 34.33 kr 49.05 kr 63.76 68

Widest divergence: DCF Models (kr 56.17) versus Asset-Based (kr 2.37). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 236M SEK
Revenue growth (YoY) -19.0%
Net margin 19.1%
Return on equity 52.7%
Free cash flow 52.9M SEK FY2025
P/E ratio 11.2
More key figures
Operating margin 11.6%
EPS (TTM) kr 2.21
Dividend yield 2.1%
EPS growth (YoY) -60.3%
Net cash 113M SEK FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 82/100

Of which business quality 80 · Market factors (momentum, volatility) 49

Profitability 96
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 80
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

Sleep Cycle AB (publ) engages in the development of sleep analysis applications in Sweden and internationally. It offers Sleep Cycle, an application that provides sleep-related solutions, including smart alarm, sleep stages and aid, and sound recordings; and Luma, an AI-driven sleep coach.

Full company description

Sleep Cycle AB (publ) engages in the development of sleep analysis applications in Sweden and internationally. It offers Sleep Cycle, an application that provides sleep-related solutions, including smart alarm, sleep stages and aid, and sound recordings; and Luma, an AI-driven sleep coach. The company was incorporated in 2001 and is headquartered in Gothenburg, Sweden.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sleep Cycle AB reported revenue of kr 248M in FY2025 versus kr 183M in FY2021, a compound +7.9%/yr. Reported net income was kr 53.2M in FY2025, compounding +60.0%/yr from FY2021.

Growth Quality 83/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
248M SEK
Latest YoY
−5.2%
Avg. 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.
+5.1%
Avg. 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.
+9.2%
Avg. growth/yr (8Y) 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.
+22.4%
Revenue +7.9%/yr
FY21 kr 183M
FY22 kr 213M
FY23 kr 236M
FY24 kr 262M
FY25 kr 248M
Net income +60.0%/yr
FY21 kr 8.1M
FY22 kr 33.9M
FY23 kr 46.1M
FY24 kr 62.6M
FY25 kr 53.2M

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Cite: Fair Value Calculator (2026). "Sleep Cycle AB Fair Value". https://www.fairvalue-calculator.com/stock/SLEEP

Peer Group

Software - Application · 709 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 82 · Top 25%
Fair Value upside +123% · Top 25%
Return on equity (TTM) 53% · Top 25%
Return on assets 15% · Top 25%
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 12% · Above median
Revenue growth -19% · Bottom 25%
Dividend yield (TTM) 2.1% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 11.2× · Cheaper than 75% of peers
P/B 6.99× · Pricier than 75% of peers
P/S (TTM) 2.13× · Pricier than median
P/FCF 1.0× · Cheaper than 75% of peers
EV/EBITDA 6.8× · 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 100 · sector 0
FUTURE 0 · sector 38
PAST 100 · sector 13
HEALTH 0 · sector 98
DIVIDEND 43 · sector 28

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 Software - Application stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

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Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Sleep Cycle AB (SLEEP) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of kr 52.48 versus a price of kr 23.50, about +123% (undervalued).
What is the fair value of SLEEP?
Our model-based fair value for Sleep Cycle AB is kr 52.48 (as of Jul 19, 2026), built from audited fundamentals. The current price is kr 23.50.
What is the quality score of SLEEP?
Sleep Cycle AB has a Quality Score of 82/100. 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 Sleep Cycle AB (SLEEP)?
Sleep Cycle AB reported trailing-twelve-month revenue of about 236M SEK (latest available figure, as of Jul 19, 2026).
What is the net profit margin of SLEEP?
The net profit margin of Sleep Cycle AB is about 19.1%, meaning it keeps roughly 19.1% of revenue as net income. Based on the latest reported figures.
Does Sleep Cycle AB pay a dividend?
Sleep Cycle AB currently shows a dividend yield of about 2.16% relative to its recent price (as of Jul 19, 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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