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Atlas Copco AB
STO:ATCO A

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Atlas Copco AB
STO:ATCO A
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Price: 174.2 SEK 1.07% Market Closed
Market Cap: kr849.8B

EV/FCFF

32.7
Current
2%
Cheaper
vs 3-y average of 33.4

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
32.7
=
Enterprise Value
kr880.4B
/
Free Cash Flow to Firm
kr26.4B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
32.7
=
Enterprise Value
kr880.4B
/
Free Cash Flow to Firm
kr26.4B

Valuation Scenarios

Atlas Copco AB is trading below its 3-year average

If EV/FCFF returns to its 3-Year Average (33.4), the stock would be worth kr177.94 (2% upside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-31%
Maximum Upside
+2%
Average Downside
12%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 32.7 kr174.2
0%
3-Year Average 33.4 kr177.94
+2%
5-Year Average 30.8 kr164.1
-6%
Industry Average 28.5 kr151.7
-13%
Country Average 22.4 kr119.47
-31%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
SE
Atlas Copco AB
STO:ATCO A
848.5B SEK 32.7 32.1
JP
Fujitec Co Ltd
TSE:6406
2 720 795.8T JPY 27.7 0
JP
Ishii Iron Works Co Ltd
TSE:6362
304.2T JPY 326 434.3 363 670.8
JP
Star Micronics Co Ltd
TSE:7718
48T JPY -8.8 29.8
US
Parker-Hannifin Corp
NYSE:PH
114.8B USD 36.5 32.4
JP
Freund Corp
TSE:6312
16.9T JPY 9 705.6 8 494.3
JP
Mitsubishi Heavy Industries Ltd
TSE:7011
15.5T JPY 27.5 55.2
US
Illinois Tool Works Inc
NYSE:ITW
74.5B USD 29.9 24.2
US
Barnes Group Inc
NYSE:B
65.9B USD 16.4 13.1
SE
Sandvik AB
STO:SAND
480.6B SEK 27.2 32.4
JP
Fanuc Corp
TSE:6954
6.4T JPY 24.6 38.5

Market Distribution

Higher than 70% of companies in Sweden
Percentile
70th
Based on 1 144 companies
70th percentile
32.7
Low
0.2 — 14.9
Typical Range
14.9 — 32.4
High
32.4 —
Distribution Statistics
Sweden
Min 0.2
30th Percentile 14.9
Median 22.4
70th Percentile 32.4
Max 829.7

Atlas Copco AB
Glance View

Atlas Copco AB, founded in Sweden in 1873, has carved out an impressive global presence as a quintessential purveyor of industrial solutions. Originally established to serve the burgeoning Swedish railway industry, the company has adeptly pivoted and expanded across varied sectors like construction, mining, and manufacturing. Its core business revolves around providing industrial productivity solutions, which include a plethora of products like compressors, vacuum solutions, and industrial power tools. By pioneering in these specialized areas, Atlas Copco ensures it holds a competitive edge in both innovation and operational efficiency. The company's drive towards incorporating sustainable practices into its production line has also endeared it to environmentally-conscious clients, further broadening its appeal in a progressively green-conscious world. The company's financial engine is primarily fueled by its equipment sales, aftermarket service agreements, and innovative rental solutions. Atlas Copco not only manufactures cutting-edge machinery but also offers comprehensive service packages that ensure longevity and optimal functionality of its equipment, thus securing recurring revenue streams. By embracing a service-centric model, the company benefits significantly from long-term partnerships with its clients, ranging from single entrepreneurs to large multinational entities. Moreover, its strategic acquisitions and an expanding global footprint underscore its commitment to maintaining market leadership within its niches. The integration of digital technology in its operations and customer interactions demonstrates Atlas Copco's commitment to remaining at the forefront of industrial innovation, ensuring both its legacy and future growth are robustly secured.

ATCO A Intrinsic Value
130 SEK
Overvaluation 25%
Intrinsic Value
Price kr174.2
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