Zalaris

In this fundamental analysis report, analysts Fabian Frenander and Jacob Löhr take a closer look at
Zalaris, a founder-led Nordic provider of multi-country HR and payroll solutions. Following several
years of post-acquisition integration and restructuring, the Company has entered a phase of
profitable growth, supported by a continued shift toward SaaS-driven Managed Services and
automation. Managed Services currently account for 76% of revenue, and EBIT margins are forecast
to expand from 10.9% in 2025E to 14.5% by 2027, driven by operating leverage and an improving
revenue mix. While the valuation remains influenced by legacy perceptions of Zalaris as a labor-
intensive BPO, increasing contract scalability, high customer retention, and compliance-driven
demand support a solid fundamental outlook. An 75/25 weighted DCF and peer valuation, based on
a target multiple of 12.2x 2027 EV/EBIT, imply an upside potential of 44% from current levels.

Investment Thesis
● Margin expansion supported by a higher-quality revenue mix and increased automation
● Embedded growth potential from a sticky and expandable customer base
● Structural compliance tailwinds and improved capital structure support long-term value creation