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Investor AB
OTC:IVSBF

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Investor AB
OTC:IVSBF
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Price: 40.488 USD 2.15% Market Closed
Market Cap: $124.1B

P/FCFE

23
Current
35%
Cheaper
vs 3-y average of 35.4

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
23
=
Market Cap
$1.1T
/
Free Cash Flow to Equity
kr49.6B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
23
=
Market Cap
$1.1T
/
Free Cash Flow to Equity
kr49.6B

Valuation Scenarios

Investor AB is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (35.4), the stock would be worth $62.44 (54% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-10%
Maximum Upside
+54%
Average Upside
22%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 23 $40.49
0%
3-Year Average 35.4 $62.44
+54%
5-Year Average 34.8 $61.3
+51%
Industry Average 20.7 $36.49
-10%
Country Average 21.3 $37.58
-7%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
Market Cap P/FCFE P/E
SE
Investor AB
OTC:IVSBF
1.1T USD 23 7.2
US
Berkshire Hathaway Inc
NYSE:BRK.A
1T USD 42.9 15.3
ZA
Remgro Ltd
JSE:REM
108.3B ZAR 24.5 22.5
SE
Industrivarden AB
STO:INDU A
210.2B SEK 25.4 5.2
MC
HAL Trust
AEX:HAL
15.4B EUR 12.1 9.6
NL
Exor NV
AEX:EXO
13.5B EUR 5.8 -3.6
SE
L E Lundbergforetagen AB (publ)
STO:LUND B
131.9B SEK 13.3 10.9
IN
Bajaj Holdings and Investment Ltd
NSE:BAJAJHLDNG
1.1T INR -17.5 13
BE
Groep Brussel Lambert NV
XBRU:GBLB
9.6B EUR -13.7 -15.4
BE
Sofina SA
XBRU:SOF
7.7B EUR -51.8 71.2
SA
Kingdom Holding Company SJSC
SAU:4280
29.6B SAR 1 575.3 13.8
P/E Multiple
Earnings Growth PEG
SE
Investor AB
OTC:IVSBF
Average P/E: 18.8
7.2
-31%
N/A
US
Berkshire Hathaway Inc
NYSE:BRK.A
15.3
-7%
N/A
ZA
R
Remgro Ltd
JSE:REM
22.5
49%
0.5
SE
Industrivarden AB
STO:INDU A
5.2
N/A N/A
MC
HAL Trust
AEX:HAL
9.6
-7%
N/A
NL
Exor NV
AEX:EXO
Negative Multiple: -3.6 N/A N/A
SE
L E Lundbergforetagen AB (publ)
STO:LUND B
10.9
N/A N/A
IN
Bajaj Holdings and Investment Ltd
NSE:BAJAJHLDNG
13
N/A N/A
BE
Groep Brussel Lambert NV
XBRU:GBLB
Negative Multiple: -15.4 N/A N/A
BE
Sofina SA
XBRU:SOF
71.2
N/A N/A
SA
Kingdom Holding Company SJSC
SAU:4280
13.8
-14%
N/A

Market Distribution

Lower than 98% of companies in Sweden
Percentile
2nd
Based on 1 043 companies
2nd percentile
2.5
Low
0.6 — 12.2
Typical Range
12.2 — 31.9
High
31.9 —
Distribution Statistics
Sweden
Min 0.6
30th Percentile 12.2
Median 21.3
70th Percentile 31.9
Max 19 008.8

Investor AB
Glance View

Investor AB, a stalwart in Sweden’s business community, has been a cornerstone of industrial and financial influence since its inception in 1916 by the Wallenberg family. Nestled in the lush Scandinavian business environment, it functions as a robust investment company, primarily focusing on owning significant stakes in multinational corporations. This Stockholm-based company thrives by leveraging its expertise in active ownership, guiding its portfolio companies toward sustainable long-term growth. Their strategy involves a meticulous selection of investments, where they target companies with potential for increased value over time. Through board memberships and active involvement, they apply pressure analogously to a Swiss watchmaker delicately adjusting finely tuned gears, ensuring that the strategic direction aligns with its vision for consistent profitability and societal impact. The company's earnings model is rooted in its deep-rooted partnerships with its investees, spanning various sectors such as technology, engineering, healthcare, and finance. Rather than solely relying on dividends or short-term capital gains, Investor AB emphasizes longevity and resilience, reinvesting earnings and strategically reallocating capital to optimize the performance of its diverse holdings. Such a model bolsters the dividend yields for its shareholders, who benefit from the growth and efficiency enhancements in the portfolio firms. This approach not only underscores the firm’s role as a heavyweight in the Nordic investment landscape but also highlights its acumen in navigating through evolving market dynamics, becoming a beacon of stability amidst global economic fluctuations.

IVSBF Intrinsic Value
39.286 USD
Overvaluation 3%
Intrinsic Value
Price $40.488
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