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Research

Tietoevry: A driver found to dissolve undervaluation

By Joni GrönqvistAnalyst
Tietoevry
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On Friday, Tietoevry reported a number of interesting things. In Q2, revenue continued to grow strongly, but the result was below expectations. The company raised its revenue guidance and repeated its profitability guidance. However, focus was on the company's plans to separate and list the Banking business, which we expect to clarify the structure, better enable business potential, and dissolve undervaluation. Our estimates remain almost unchanged and we expect stable earnings growth through strengthened revenue growth and profitability and good dividend yield for the coming years. The valuation picture of the share is still very attractive from several angles (2022e adj. P/E 11x and dividend yield > 6%) and now, with the separation, a driver to dissolve the undervaluation.

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Tietoevry operates in the IT sector. The company offers a range of software and cloud-based solutions, with the greatest specialist expertise in SaaS solutions. Competence is found in business processes, application services, infrastructure solutions, and front-end solutions. Customers are found in several markets on a global level. The company was formed in 2019 through a merger of Tieto and EVRY. The headquarters are located in Helsinki.

Read more on company page

Key Estimate Figures24.07.2022

202122e23e
Revenue2,823.32,909.73,015.4
growth-%1.3 %3.1 %3.6 %
EBIT (adj.)367.7381.1409.4
EBIT-% (adj.)13.0 %13.1 %13.6 %
EPS (adj.)2.202.362.61
Dividend1.401.401.50
Dividend %5.1 %8.0 %8.6 %
P/E (adj.)12.57.46.7
EV/EBITDA7.16.45.3

Forum discussions

Probably this news. The article is unfortunately behind a paywall, but the main point is in the headline. A Historical Buying Opportunity or...
2/3/2026, 8:57 PM
by Index
9
AI is supposedly going to wipe out all the software houses
2/3/2026, 4:43 PM
8
I wonder what news caused Tieto to slump -5.63% today
2/3/2026, 4:36 PM
by jukande
9
Yep, and this BEKK deal was already accounted for in the forecasts starting specifically from February. Moving forward Here is also our December...
2/3/2026, 6:35 AM
by Joni Grönqvist
5
News Powered by Cision Tieto on saanut Bekk Consulting AS:n myynnin päätökseen Tietoevry Oyj LEHDISTÖTIEDOTE 2.2.2026 klo 17.30 Tieto julkisti...
2/2/2026, 4:13 PM
by Cadel
12
In Kauppalehti today, 21 Jan 2026 SEB raises Tietoevry’s target price to 20.00 euros (prev. 18.00 euros), hold recommendation remains unchanged
1/21/2026, 7:02 AM
by Index
16
Here are Frans’s comments on Tieto’s small acquisitions in Spain. Tietoevry is acquiring the Spanish companies OpenSpring and GrupoOnetec. The...
1/12/2026, 6:53 AM
by Sijoittaja-alokas
9
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