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If you are wondering whether Vestas Wind Systems is attractively priced today or if recent optimism is already reflected in the share price, this article walks through what the current market value might be indicating.
The stock closed at DKK 158.35 with recent returns of 2.4% over 7 days, 3.1% over 30 days, an 11.4% decline year to date, and a 44.1% gain over the past year, a mix that can signal shifting views on both opportunity and risk.
Recent news coverage has focused on Vestas Wind Systems as a key name in global wind power, with attention on how the business fits into longer term energy transition themes and policy support for renewables. This context helps explain why the share price has seen both periods of pressure and renewed interest over different time frames.
On Simply Wall St’s valuation checks, Vestas Wind Systems currently has a value score of 4/6. This will be unpacked using different valuation methods next, followed by a broader way to think about what the current price implies.
A Discounted Cash Flow, or DCF, model estimates what a business might be worth today by projecting its future cash flows and discounting them back to a present value using a required return.
For Vestas Wind Systems, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about €1,071.5 million. Analyst estimates and subsequent extrapolations point to projected free cash flow of €1,697.25 million in 2030, with a series of yearly estimates and extensions between 2026 and 2035 that Simply Wall St has discounted back to today.
Bringing all of those projected cash flows into today’s money produces an estimated intrinsic value of DKK 208.25 per share, compared with the recent share price of DKK 158.35. That gap implies the shares trade at roughly a 24.0% discount to this DCF estimate, which indicates the stock may be undervalued on this model alone.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Vestas Wind Systems is undervalued by 24.0%. Track this in your watchlist or portfolio, or discover 227 more high quality undervalued stocks.
VWS Discounted Cash Flow as at Mar 2026
For a profitable company, the P/E ratio is a useful way to see how much you are paying for each unit of earnings, which makes it a straightforward tool to compare expectations across similar businesses.
In general, higher growth expectations or lower perceived risk can justify a higher “normal” or “fair” P/E ratio, while slower growth or higher risk usually support a lower one. Vestas Wind Systems currently trades on a P/E of 26.9x, compared with an Electrical industry average P/E of about 30.6x and a peer group average of 72.2x. The shares therefore sit below both of these reference points.
Simply Wall St also calculates a proprietary “Fair Ratio” for Vestas Wind Systems of 37.4x. This Fair Ratio aims to be more tailored than a simple peer or industry comparison, as it factors in elements such as the company’s earnings growth profile, risks, profit margins, industry and market capitalization. When this Fair Ratio of 37.4x is set against the actual P/E of 26.9x, Vestas Wind Systems screens as undervalued on this metric.
Result: UNDERVALUED
CPSE:VWS P/E Ratio as at Mar 2026
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Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St let you attach a clear story about Vestas Wind Systems to your numbers by linking your view of its future revenue, earnings and margins to a financial forecast, a Fair Value, and then a simple comparison to the current share price, all within an easy to use tool on the Community page that updates automatically when new earnings or news appear.
For Vestas Wind Systems however we will make it really easy for you with previews of two leading Vestas Wind Systems Narratives:
🐂 Vestas Wind Systems Bull Case
Fair value in this bullish narrative: DKK 175.45
Implied discount to this fair value at the last close of DKK 158.35: about 9.7% undervalued
Revenue growth assumption in this narrative: 8.08% a year
Views policy support, grid reforms and offshore build out as expanding Vestas Wind Systems order potential and earnings power.
Assumes margins improve as offshore ramps, service contracts are repriced and cost efficiency gains flow through.
Builds to a higher analyst consensus price target, with fair value tied to revenue of €23.1b, earnings of €1.3b and a future P/E of 20.2x by 2028.
🐻 Vestas Wind Systems Bear Case
Fair value in this bearish narrative: DKK 94.76
Implied premium to this fair value at the last close of DKK 158.35: about 40.3% overvalued
Revenue growth assumption in this narrative: 4.48% a year
Focuses on rising costs, supply chain issues and tougher competition that could pressure margins and cash flow.
Builds in slower revenue growth and thinner profit margins, alongside a lower future P/E of 16.5x by 2028.
Arrives at a fair value well below the current share price, with a bearish target of DKK 71.57 that assumes the market is pricing in more growth and profitability than this view supports.
Have a read of the full narratives, compare the assumptions to your own view of policy support, competition and execution risk, and consider which story feels closer to how you see Vestas Wind Systems over the next few years.
Do you think there’s more to the story for Vestas Wind Systems? Head over to our Community to see what others are saying!
CPSE:VWS 1-Year Stock Price Chart
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com