(RATO-B) Ratos (publ) - Ratings and Ratios

Ratos AB (publ) is a Swedish private equity firm with a long-standing history, established in 1933. The company specializes in middle-market buyouts, turnarounds, and add-on acquisitions, focusing on unlisted medium-sized companies across the Nordic region. Its investment strategy excludes sectors such as arms, pornography, and environmentally harmful industries. Ratos targets companies in the industrial, construction, consumer, and technology sectors, with a preference for majority stakes and active ownership. The firm typically holds investments for 5 to 10 years, seeking to create value through operational improvements and strategic initiatives.

From a technical perspective, Ratos AB (RATO-B) is currently trading at SEK 30.64, slightly above its 20-day SMA of SEK 30.27 but below its 50-day SMA of SEK 33.19. The stocks 200-day SMA stands at SEK 32.47, indicating a recent downtrend. Average trading volume over the past 20 days is 615,897 shares, with an ATR of 1.26, suggesting moderate volatility. The stocks valuation metrics show a P/E ratio of 39.95, with a forward P/E of 9.01, indicating market expectations of improved earnings. The P/B ratio of 0.81 and P/S ratio of 0.32 suggest undervaluation relative to book value and sales.

Over the next three months, Ratos AB (RATO-B) is expected to trade within a range of SEK 29.50 to SEK 32.00, influenced by its current technical setup and fundamental valuation. The stock may face resistance at its 50-day SMA (SEK 33.19) and support at its 200-day SMA (SEK 32.47). With a forward P/E of 9.01 and improving RoE of 2.03, the stock could attract value investors seeking exposure to the Nordic private equity market. However, the recent downtrend and high historical P/E of 39.95 may limit near-term upside potential.