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UPM-Kymmene Oyj (UPM) Fair Value & Analysis

Basic Materials · FI · Market cap €12.4B

UK UPM-Kymmene Oyj UPM · HE
Price€23.48
Fair Value€21.15
Upside-9.9%
Quality59/100
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Mixed Growth
Thin margins · 5.7% net margin
Low debt · generates free cash flow
6.43% dividend yield
Mixed vs. peers (6/15)
Narrow moat 39/100
Evidence: High Range €15.88 – €26.45 Share as image

Fair value as of: Jul 19, 2026

From 24 valuation models · updated 19 days ago

Fair value updated Jul 19, 2026, revised from €15.47 to €21.15 (+36.7%) since Jun 24, 2026. Share price +2.6% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from €15.88 (bear) to €26.45 (bull), base €21.15. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 59/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

€31.82 €20.56 Fair Value €21.15 May 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 €20.56 – €31.82 · fair‑value band €15.88 – €26.45 · the €23.48 price screens above the €21.15 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

UPM-Kymmene Oyj (UPM) currently trades at €23.48, while our model-based Fair Value estimate is €21.15, implying the stock looks roughly 9.9% fairly valued today. We read business quality at 59/100 (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: high).

Over the trailing twelve months, UPM-Kymmene Oyj generated revenue of €9.5B at a net margin of 5.7%. Revenue declined 5.3% year over year. It earns a return on equity of 5.2%. Net debt stands at €3.1B. Fundamentals as of Jul 19, 2026

Our scenario range runs from €15.88 (bear case) to €26.45 (bull case); at €23.48, 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 15% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 10% fair-value upside, at -10%, UPM 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 €14.81 €21.67 €33.41 80
Residual Income €14.62 €14.91 €14.31 76
Rev-Margin DCF €7.10 €11.07 €16.11 74
All 24 models by family
DCF Models
FCF DCF €13.97 €21.04 €34.13 38
Owner Earnings €7.87 €12.54 €21.20 31
5Y Revenue Exit €7.10 €10.65 €15.78 39
5Y EBITDA Exit €12.88 €20.66 €30.96 41
5Y P/E Exit €10.08 €15.81 €22.69 38
10Y Revenue Exit €9.46 €12.35 €15.30 36
10Y EBITDA Exit €13.17 €18.54 €24.21 37
10Y P/E Exit €11.47 €15.54 €19.36 35
Earnings-Based
Graham-Dodd €6.19 €7.57 €8.51 54
EPV €0.1500 €0.8500 €1.46 59
Dividend Discount
Gordon GGM €13.79 €15.09 €17.08 70
DDM Multi-Stage €13.79 €17.30 €22.22 61
Multiples
P/E Multiple €13.65 €18.21 €22.76 63
P/S Multiple €11.61 €15.47 €19.34 58
P/B Multiple €11.61 €15.47 €19.34 55
EV/EBIT €7.02 €10.71 €14.40 53
EV/EBITDA €14.93 €21.26 €27.58 54
EV/Revenue €3.42 €6.61 €9.81 43
Asset-Based
NCAV (Graham) €9.48 €12.71 €18.97 50
Growth DCF
Growth DCF €14.81 €21.67 €33.41 80
Rev-Margin DCF €7.10 €11.07 €16.11 74
Economic Profit
Residual Income €14.62 €14.91 €14.31 76
ROIC Compounder €0.1500 €0.8500 €1.46 72
Growth Earnings
Growth-Adj P/E €9.66 €13.80 €17.94 68

Widest divergence: DCF Models (€15.54) versus Earnings-Based (€0.8500). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €9.5B
Revenue growth (YoY) -5.3%
Net margin 5.7%
Return on equity 5.2%
Free cash flow €977M FY2025
P/E ratio 23.0
More key figures
Operating margin 10.0%
EPS (TTM) €1.02
Dividend yield 6.4%
EPS growth (YoY) +43.7%
Net debt €3.1B FY2025

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

Quality Score breakdown

Overall quality 59/100

Of which business quality 58 · Market factors (momentum, volatility) 56

Profitability 26
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 44
Distance to the 52-week high (market factor)
Net Issuance 88
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

UPM-Kymmene Oyj, together with its subsidiaries, engages in the forest-based bioindustry worldwide. It operates through UPM Fibres, UPM Energy, UPM Adhesive Materials, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other Operations segments.

Full company description

UPM-Kymmene Oyj, together with its subsidiaries, engages in the forest-based bioindustry worldwide. It operates through UPM Fibres, UPM Energy, UPM Adhesive Materials, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other Operations segments. The company offers softwood, birch, and eucalyptus pulp for tissue, specialty papers, packaging papers, graphic papers, and board; sawn timber for joinery, packaging, furniture, planning, and construction industries; and wood-based renewable diesel and renewable naphtha for transport and petrochemical industry. It also generates electricity through hydro, thermal, and nuclear power plants; provides financial portfolio management services, as well as engages in forestry water protection. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, parquet manufacturing, and other industrial applications; wood and wood-based biomass, and forestry services for forest investors and owners; biomedical products, such as nano-fibrillar cellulose for clinical and life science applications; wood-based lignin products for industrial use; and wood-based biochemicals for replacing fossil-based raw materials. It serves distributors, industrial users, publishers, cataloguers, retailers, printing houses, merchants, converters, and label stock manufacturers; label printers; brand owners; and producers of tissue, board, specialty, and graphic paper. The company was founded in 1871 and is headquartered in Helsinki, Finland.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

UPM-Kymmene Oyj reported revenue of €9.7B in FY2025 versus €9.8B in FY2021, a compound −0.4%/yr. Reported net income was €480M in FY2025, compounding −21.8%/yr from FY2021.

Growth Quality 57/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€9.7B
Latest YoY
−6.6%
Avg. growth/yr (3Y)
−6.3%
Avg. growth/yr (5Y)
+2.4%
Avg. growth/yr (27Y)
+0.6%
Revenue −0.4%/yr
FY21 €9.8B
FY22 €11.7B
FY23 €10.5B
FY24 €10.3B
FY25 €9.7B
Net income −21.8%/yr
FY21 €1.3B
FY22 €1.5B
FY23 €388M
FY24 €436M
FY25 €480M

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Cite: Fair Value Calculator (2026). "UPM-Kymmene Oyj Fair Value". https://www.fairvalue-calculator.com/stock/UPM

Earlier news

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

Peer Group

Paper & Paper Products · 114 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 59 · Top 25%
Fair Value upside −10% · Below median
Return on equity (TTM) 5% · Above median
Return on assets 2% · Above median
Net margin (TTM) 6% · Top 25%
Operating margin (TTM) 10% · Top 25%
Revenue growth -5% · Bottom 25%
Dividend yield (TTM) 6.4% · Top 25%
Debt / equity 0.28× · Higher than median

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

P/E (TTM) 23.0× · Pricier than median
P/B 1.43× · Pricier than 75% of peers
P/S (TTM) 1.50× · Pricier than 75% of peers
P/FCF 14.6× · Pricier than 75% of peers
EV/EBITDA 14.3× · Pricier than 75% of peers
PEG 12.89× · 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.

VALUE 20 · sector 22
FUTURE 0 · sector 8
PAST 21 · sector 12
HEALTH 86 · sector 91
DIVIDEND 100 · sector 38

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 Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Klabin S.A KLBN11 R$17.58 R$3.89 -78%
Suzano S.A SUZB3 R$41.70 R$138.01 +231%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 103.00 kr 49.40 -52%
Shandong Sunpaper Co 002078 ¥14.13 ¥17.29 +22%
Holmen AB HOLMB kr 305.40 kr 217.72 -29%
Nine Dragons Paper (Holdings) Limited 2689 HK$7.55 HK$8.73 +16%
Empresas CMPC S.A CMPC 1,078 CLP 1,269 CLP +18%
Xianhe Co 603733 ¥22.05 ¥24.32 +10%
Billerud AB BILL kr 68.70 kr 48.60 -29%
MCC Meili Cloud Computing Industry Investment Co 000815 ¥12.12 ¥1.63 -87%

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Frequently asked questions

Is UPM-Kymmene Oyj (UPM) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of €21.15 versus a price of €23.48, about −10% (fairly valued).
What is the fair value of UPM?
Our model-based fair value for UPM-Kymmene Oyj is €21.15 (as of Jul 19, 2026), built from audited fundamentals. The current price is €23.48.
What is the quality score of UPM?
UPM-Kymmene Oyj has a Quality Score of 59/100. 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 UPM-Kymmene Oyj (UPM)?
UPM-Kymmene Oyj reported trailing-twelve-month revenue of about €9.5B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of UPM?
The net profit margin of UPM-Kymmene Oyj is about 5.7%, meaning it keeps roughly 5.7% of revenue as net income. Based on the latest reported figures.
Does UPM-Kymmene Oyj pay a dividend?
UPM-Kymmene Oyj currently shows a dividend yield of about 5.92% 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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