Vestas Wind Systems (CPSE:VWS) is back in focus after reporting fourth quarter equipment orders that exceeded consensus expectations, supported by 5,476 MW of announced deals across EMEA, the Americas, and APAC.
See our latest analysis for Vestas Wind Systems.
The share price has reacted strongly to these order announcements, with a 1-day share price return of 2.71%, a 30-day share price return of 14.87% and a 90-day share price return of 43.81%. The 1-year total shareholder return of 76.61% contrasts with weaker 3-year and 5-year total shareholder returns, suggesting momentum has picked up after a tougher multi year period.
If Vestas’ recent order momentum has your attention, this can be a good moment to scan other clean energy suppliers and equipment makers through fast growing stocks with high insider ownership.
With the shares up 77% over 1 year and now trading slightly above the average analyst target, the key question is whether Vestas still offers value after this surge, or if the market is already pricing in future growth.
At a last close of DKK183.5 versus a narrative fair value of DKK156.26, the popular view is that Vestas carries a valuation premium that hinges on specific growth and margin assumptions.
Vestas’ ramp-up and serial manufacturing of next-generation offshore turbines in Poland and project execution for large offshore contracts lay the foundation to capture premium market share and benefit from accelerating offshore wind adoption, expected to support both future revenue and margin improvement as ramp-up costs decline.
Curious what kind of revenue path and margin profile need to line up for this view to hold? The narrative leans on steady top line growth, meaningfully higher profitability and a future earnings multiple that still assumes investors pay up for that story. The exact mix of these moving parts might surprise you.
Result: Fair Value of DKK156.26 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, recent order volatility and higher than expected offshore ramp up costs could quickly challenge this upbeat scenario and change how the current premium is viewed.
Find out about the key risks to this Vestas Wind Systems narrative.
While the narrative fair value suggests Vestas is about 17% overvalued, the current P/E of 26x tells a slightly different story. It sits above the European Electrical industry average of 23.3x, but just under the company’s own fair ratio of 27.4x. This implies that there may be only a limited valuation cushion if sentiment cools.
See what the numbers say about this price — find out in our valuation breakdown.
CPSE:VWS P/E Ratio as at Jan 2026
If the assumptions behind these views do not quite fit how you see Vestas, you can stress test the numbers yourself and build a customised narrative in just a few minutes, then Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Vestas Wind Systems.
If Vestas has sparked your interest, do not stop here. Broaden your watchlist with a few focused stock ideas that other investors are already tracking.
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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