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Research

Tietoevry: Stable return potential at a discount

By Joni GrönqvistAnalyst
Tietoevry
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Tietoevry's Q3 was well in line with our expectations in terms of operational activities and comments. We made only minor adjustments to our forecasts and expect moderate earnings growth from the company driven by revenue and profitability. Tietoevry's good track record maintain confidence in continued positive development in the coming years, although our estimates are clearly below the company's target level. The share's valuation picture is still attractive from several angles (2023e P/E 13x, adj. P/E 10x, DCF EUR 30, SOTP EUR 31 and expected return over 15%) and business areas to be separated provide drivers to dismantle 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.

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Key Estimate Figures26.10.2023

202223e24e
Revenue2,928.12,848.72,911.9
growth-%3.7 %-2.7 %2.2 %
EBIT (adj.)379.0359.6374.9
EBIT-% (adj.)12.9 %12.6 %12.9 %
EPS (adj.)2.352.192.27
Dividend1.451.501.55
Dividend %5.5 %8.2 %8.5 %
P/E (adj.)11.38.48.1
EV/EBITDA9.07.66.7

Forum discussions

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
That deal looks like a sensible move. Out of those 200 employees, it’s hardly worth keeping even half on the payroll going forward; instead,...
1/9/2026, 10:38 AM
5
Tieto is building something truly interesting in Spain, considering the company’s previous moves in the Catalonia region. European patient data...
1/9/2026, 10:33 AM
by Dr.Feelgood
21
200 employees generate only €10M in revenue? We’re talking about long customer relationships, so the companies aren’t startups.
1/9/2026, 9:20 AM
by heskelin
5
Had to look for the purchase price a couple of times as my eyes misread the part about it being based on 8m in “goodwill” I guess I’m starting...
1/9/2026, 8:58 AM
by IL BUONO
0
News Powered by Cision Tieto ostaa OpenSpring- ja GrupoOnetec-yhtiöt Espanjasta tukeakaseen... Tietoevry Oyj LEHDISTÖTIEDOTE 9.1.2026, klo 9...
1/9/2026, 7:23 AM
by Cadel
24
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