Volue A/S (VOLUE)

Volue A/S (VOLUE)

In this equity report, analysts Engla Wigstrand and Linus Öberg take a closer look at Volue, a Norwegian software and consulting company that offers an end-to-end solution that helps forecast, plan and sell electricity on the wholesale energy market. Continued expansion in Europe, coupled with its new expansion in Japan, drives a sales CAGR of 17% between 2023E-2028E and paves the way for an increase in EBIT margin from 3.3% to 17.0% in 2025E. The target price of NOK 32.6 is derived from an equally weighted split between a peer valuation and a DCF, implying an upside of 26.8% by 2025E.

Investment highlights

  • Established market leader in end-to-end solutions.
  • Inflection point reached, which will increase margins going forward
  • Strong underlying market growth as energy markets become more complex

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