Investor AB (INVE.B) AI Stock Analysis

• Market Cap: kr1.05T
• Dividend Yield: 1.6%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.00
• Revenue Growth: 79.31%
• EPS Growth: -65.65%
• Country: SE
• Employees: 19,060
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 18.07
• Shares Outstanding: 1,821,936,800
• 10 Day Avg. Volume: 2,738,399
• 30 Day Avg. Volume: 2,745,947
• PEG Ratio: 0.16
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 4.56
• P/FCF Ratio: 53.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr345.00
• Price Target Upside: 0.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: kr388.00 ▲(13.05% Upside)

The score is driven primarily by strong financial strength (low leverage, growing equity, and consistently positive free cash flow) despite meaningful earnings/revenue volatility. Technicals add support via a clear uptrend with moderate momentum, and valuation is favorable with a low P/E and a modest dividend yield.

Positive Factors

Conservative balance sheet

Low, stable leverage and a growing equity base give Investor AB durable financial flexibility to hold through market cycles, fund opportunistic investments, and maintain distributions. A conservative balance sheet supports active ownership and long-term value creation without reliance on high debt.

Consistent cash generation

Consistent positive operating and free cash flow, with meaningful FCF improvement in 2023–2025, underpins the company's ability to fund dividends, reinvest in holdings, and execute private equity initiatives. Reliable cash generation bolsters capital allocation over multiple cycles.

Diversified investment model

A diversified, long-term investment model across industrials, financials, real estate and other sectors plus active ownership and private equity capability creates multiple durable value drivers. This reduces reliance on one revenue stream and enables operational improvement in portfolio companies.

Negative Factors

Earnings and revenue volatility

Significant volatility in earnings and revenue, driven by valuation and investment swings, reduces predictability of distributable earnings and complicates multi-year planning. This structural sensitivity to market revaluations can pressure payout consistency and capital allocation decisions.

Sharp 2025 revenue decline

A roughly 40% revenue decline in 2025 highlights dependence on marked-to-market investment outcomes. Large year-to-year swings in top-line from portfolio valuation changes constrain forecasting and indicate cash available for returns can swing materially with market cycles, limiting steady growth visibility.

Cyclicality in returns on equity

ROE volatility, including a negative year in 2022, reflects cyclical exposure to capital market movements. This structural cyclicality can force conservative capital actions in downturns, hinder long-term compounding of returns, and increase the risk of constrained capital deployment during stress.

Investor AB Business Overview & Revenue Model

Company Description

Investor AB (publ) is a venture capital firm specializing in mature, middle market, buyouts and growth capital investments. It is operating through four business areas including core, private equity, operating, and financial investments. For core investments, the firm invests in health care, financial services, IT and fintech sectors and considers investments in listed companies in leading minority positions. The firm seeks to invest globally and acquire a board seat. For its operating investments, the firm seeks to focus on medium-sized to large companies headquartered in Northern Europe. It acquires controlling interest or minority position with significant influence in its portfolio companies within operating investments. The firm considers majority or minority investments in both listed and unlisted companies. Within private equity, the firm makes venture capital and buyout investments. For venture capital, it seeks investments through its subsidiary, Investor Growth Capital, which is focused on investments in the information technology, technology, engineering, financial services, and healthcare sectors in Europe, the United States, and Asia. It seeks to invest in companies ranging from startups to companies that are about to enter an expansion stage and its investment commitment range between SEK 20 million ($2.94 million) and SEK 200 million ($29.43 million). In its venture capital investments, it acquires minority stakes in its portfolio companies and the ownership horizon varies from three to seven years. For buyouts, the firm makes fund investments through its subsidiary, EQT that makes buyout investments in medium-sized mature companies in Northern Europe and Greater China. The firm seeks to exit its private equity investments between three years and seven years. The firm seeks to take board membership in its portfolio companies. For financial investments, it acquires minority ownership in financial holdings for shorter horizon. Investor AB (publ) was founded in 1916 and is based in Stockholm, Sweden with additional offices in Amsterdam, Netherlands; Beijing, China; Menlo Park, California; Hong Kong, China; New York, New York; and Tokyo, Japan.

How the Company Makes Money

Investor AB generates revenue primarily through dividends and capital gains from its portfolio of investments. The company acquires and holds significant equity stakes in publicly traded companies, which provide regular dividend income. Additionally, as these companies grow and increase in value, Investor AB benefits from capital appreciation when it sells its shares or receives dividends from these investments. The company also engages in private equity investments, where it seeks to enhance value through active management and operational improvements. Strategic partnerships with other investment firms and industry players further bolster its revenue potential by expanding its investment opportunities and enhancing its portfolio performance.

Investor AB Financial Statement Overview

Summary

Strong overall financial profile supported by low and stable leverage, a substantially growing equity base, and consistently positive operating and free cash flow. The main constraint is high volatility in revenue and earnings (notably the 2022 loss year and a sharp revenue decline in 2025), reflecting sensitivity to investment/valuation swings.

Income Statement

Profitability is strong in most years, with very high operating and net margins in 2020–2021 and again in 2023–2025, and a clear rebound after the 2022 loss year. However, results are volatile: 2022 shows sharply negative revenue and earnings, and 2025 revenue fell materially versus 2024 (about -40%), indicating earnings can swing heavily with investment/valuation outcomes rather than steady fee-like growth.

Balance Sheet

The balance sheet looks conservative for the business: leverage is low and stable with debt-to-equity around ~0.12–0.19 across the period, and equity has grown substantially from 2020 through 2025. Returns on equity are generally solid (often mid-teens or better), but the 2022 loss drove a negative return on equity that highlights sensitivity to market conditions.

Cash Flow

Cash generation is consistently positive with operating cash flow and free cash flow positive every year, and free cash flow improved meaningfully in 2023–2025. Cash flow quality is generally reasonable, with free cash flow typically covering a large portion of net income (roughly ~0.73–0.86 in most profitable years). The key weakness is variability: in 2022, net income was negative while cash flow stayed positive, and the relationship between earnings and cash flow can shift notably year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	221.86B	172.83B	183.96B	-24.82B	266.90B
Gross Profit	217.18B	168.91B	180.49B	-27.30B	264.79B
EBITDA	158.45B	114.39B	127.69B	-73.68B	228.32B
Net Income	157.49B	113.34B	127.05B	-74.76B	228.06B
Balance Sheet
Total Assets	1.10T	952.09B	838.45B	724.37B	795.54B
Cash, Cash Equivalents and Short-Term Investments	22.19B	33.95B	31.85B	27.18B	18.91B
Total Debt	117.15B	99.42B	89.53B	91.40B	87.27B
Total Liabilities	148.91B	132.34B	121.02B	118.71B	112.04B
Stockholders Equity	953.71B	819.36B	716.77B	604.87B	682.61B
Cash Flow
Free Cash Flow	18.99B	19.16B	17.25B	12.24B	10.46B
Operating Cash Flow	22.16B	23.58B	20.97B	16.61B	14.26B
Investing Cash Flow	-31.66B	-11.06B	399.00M	-7.46B	-2.77B
Financing Cash Flow	7.25B	-14.57B	-15.43B	-15.10B	-13.17B

Investor AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 343.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:INVE.B, the sentiment is Positive. The current price of 343.2 is above the 20-day moving average (MA) of 339.66, above the 50-day MA of 327.79, and above the 200-day MA of 299.15, indicating a bullish trend. The MACD of 4.00 indicates Positive momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 67.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:INVE.B.

Investor AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDU.A	81 Outperform	kr192.37B	13.93	8.24%	2.00%	13.97%	-56.08%
INVE.B	79 Outperform	kr1.05T	6.67	8.06%	1.60%	79.31%	-65.65%
INDU.C	74 Outperform	kr192.37B	13.96	8.24%	2.02%	13.97%	-56.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LUND.B	65 Neutral	kr131.44B	17.31	6.47%	0.92%	7.90%	-18.95%
KINV.A	47 Neutral	kr20.22B	172.66	―	―	-97.64%	―
KINV.B	46 Neutral	kr20.22B	163.06	0.33%	―	-97.64%	―