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Vestas Wind Systems (CPSE:VWS) has drawn fresh attention after a strong stretch of returns, with the shares up around 11% over the past month and about 44% in the past 3 months.
See our latest analysis for Vestas Wind Systems.
The DKK190.1 share price sits against a very strong 1 year total shareholder return of 103.6%. The recent 43.7% 3 month share price return suggests momentum has been rebuilding after weaker 3 and 5 year total shareholder returns.
If Vestas has you looking more closely at clean energy and related themes, it could be a good moment to widen your search to aerospace and defense stocks as well.
After such a sharp rebound, with Vestas shares now around DKK190.1 and recent annual revenue of €18,693.0m and net income of €937.0m, the key question is whether the current price still leaves room for opportunity or if the market is already pricing in future growth.
Vestas Wind Systems’ most followed valuation narrative puts fair value at DKK162.05 against the DKK190.1 last close, which raises questions about how optimistic current pricing is.
The resolution of U.S. policy uncertainty and renewed government support for wind is driving a significant rebound in order intake, especially in onshore. This sets the stage for robust multi-year demand in the U.S., a key market, likely boosting revenue growth into the second half of the decade.
Curious what kind of revenue path, margin improvement, and future earnings multiple are baked into that fair value math? The narrative leans heavily on execution, policy support, and a richer profit profile to justify its view. The exact mix of those assumptions might surprise you.
Result: Fair Value of DKK162.05 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there is still a risk that order intake stays patchy and offshore ramp up costs remain a drag on margins, which would challenge this optimistic setup.
Find out about the key risks to this Vestas Wind Systems narrative.
While the most popular narrative flags Vestas Wind Systems as about 17.3% overvalued against a DKK162.05 fair value, the current P/E of 26.9x tells a slightly different story. It sits below the fair ratio of 27.4x and the peer average of 29.2x, although it is higher than the European electrical industry average of 23.2x.
On earnings, Vestas trades at a premium to the wider industry. However, it does not trade at a premium to its immediate peer group or its own fair ratio. This could mean less obvious downside or upside than the narrative suggests. The key question is whether you think future results support staying closer to peers or moving back toward the broader industry level.
See what the numbers say about this price — find out in our valuation breakdown.
CPSE:VWS P/E Ratio as at Jan 2026
If you are not fully on board with this view, or simply prefer to work from your own numbers, you can build a personalised Vestas story in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Vestas Wind Systems.
If Vestas is on your radar, do not stop there, the Simply Wall St screener can quickly surface other opportunities you might wish you had found earlier.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include VWS.CO.
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