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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on INVE

Investor AB's recent performance was positively influenced by the appointment of the Nomination Committee for AB Electrolux's Annual General Meeting 2026. This move indicates stability and good governance practices at the company's investee. Furthermore, as one of the largest shareholders of Electrolux, Investor AB stands to benefit from the company's strategic direction. Additionally, according to recent data, Investor AB's portfolio companies have shown resilience, contributing to a favorable outlook. The company's strategic investments and ownership structure are being reinforced.

1.c. Company Highlights

2. Investor AB's Q4 and Full Year 2024 Earnings Report Analysis

Investor AB delivered a robust performance in the fourth quarter and full year 2024, with net asset value (NAV) growing by 20% year-over-year, significantly outpacing the SIXRX index's 9% return. The company's Investor B share returned an impressive 27%, showcasing strong outperformance. Organic sales growth across major subsidiaries was 3%, with underlying EBITDA surging 11%, driven by operational efficiency and strategic investments.

Publication Date: Feb -23

📋 Highlights
  • Net Asset Value Growth:: Net asset value (NAV) grew by 20% in 2024, outperforming the SIXRX index, which returned 9%. This growth was driven by strong performance across all three business areas.
  • Patricia Industries Performance:: Patricia Industries delivered a 6% total return in Q4, supported by underlying earnings growth and a significant tailwind from the strong U.S. dollar. Organic sales growth was 3%, with underlying EBITDA up 11%.
  • Investment in EQT:: The company committed to EQT funds, with a focus on strategic investments. BPEA IX's target size increase to $2 billion aligns with Investor AB's 3% allocation strategy, ensuring continued alignment with return requirements.
  • Dividend Yield and Cash Flow:: The company distributed over 50% of incoming funds to shareholders in 2024, supported by strong cash flow generation across all business areas. The dividend yield remains attractive at 3.8%.
  • Strong Balance Sheet:: Investor AB maintains a strong financial position with leverage at 1.2%, within the lower end of its policy range. The company has a high credit rating and no repayment obligations until 2029, supported by an average debt maturity of 10 years.

Business Areas Performance

Patricia Industries led with a 6% total return, benefiting from a strong U.S. dollar and robust earnings growth. Listed companies saw mixed results, with Ericsson, Nasdaq, and SAAB performing well, though overall returns were -4%, still ahead of the SIXRX's -6%. EQT investments faced challenges, but the company remains committed to reinvesting in new fund cycles, highlighting confidence in future growth.

Strategic Focus and Portfolio Management

Christian Cederholm emphasized the company's strategic pillars: "We focus relentlessly on performance, portfolio, and people." This approach has driven profitable growth and future-proofing of businesses. Portfolio diversification across strong companies in attractive industries underscores their strategic direction, supported by a proven business model generating consistent cash flow.

Valuation and Financial Health

Investor AB's valuation metrics indicate attractiveness, with a P/E ratio of 8.7, below industry averages, suggesting undervaluation. The dividend yield of 1.49% offers an appealing return. The company's strong balance sheet, with low leverage and significant cash flow, positions it well for sustained growth and shareholder returns.

3. NewsRoom

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Nomination Committee appointed for AB Electrolux Annual General Meeting 2026

Sep -18

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Weekly Picks: 💸 A Steady Compounder, German Horsepower, and a Pharma Giant’s Comeback

Apr -30

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Investor AB (IVSBF) (Q4 2024) Earnings Call Highlights: Strong Full-Year NAV Growth Amid Mixed ...

Jan -24

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Investor AB's Dividend Analysis

May -07

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Investor AB's Dividend Analysis

Nov -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.68%)

6. Segments

Listed Companies

Expected Growth: 6.4%

Investor AB's listed companies portfolio is driven by growth in the Healthcare sector, increasing consolidation in the Technology industry, and strong fundamentals in the Consumer Goods sector, with companies like ABB and Atlas Copco driving growth.

Patricia Industries

Expected Growth: 12.1%

Patricia Industries' growth is driven by increasing demand for sustainable investments and the company's strategic expansion into new markets, leveraging Investor AB's expertise and resources.

Investments in EQT

Expected Growth: 12.4%

EQT's private equity business, driven by increasing global investments and rising asset values, is expected to grow significantly, supported by Investor AB's strong financial position and commitment to EQT's long-term development.

Investor Groupwide

Expected Growth: 6.4%

Investor AB's Investor Groupwide segment is driven by increasing ESG adoption, expansion of private equity and credit investments, and strategic acquisitions, which will sustain growth momentum.

7. Detailed Products

Patent and Trademark Management

Investor AB's patent and trademark management services help companies to protect and monetize their intellectual property.

Venture Capital Investments

Investor AB's venture capital investments focus on early-stage companies with high growth potential in the technology and life science sectors.

Private Equity Investments

Investor AB's private equity investments focus on established companies with strong market positions and growth potential.

Real Estate Investments

Investor AB's real estate investments focus on commercial properties in prime locations, providing a stable source of income.

Listed Equity Investments

Investor AB's listed equity investments focus on publicly traded companies with strong market positions and growth potential.

8. Investor AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Investor AB (publ) is medium due to the presence of alternative investment options for investors.

Bargaining Power Of Customers

The bargaining power of customers for Investor AB (publ) is low due to the company's diversified investment portfolio and lack of dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Investor AB (publ) is medium due to the company's reliance on various suppliers for its investment activities.

Threat Of New Entrants

The threat of new entrants for Investor AB (publ) is low due to the high barriers to entry in the investment industry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Investor AB (publ) is high due to the competitive nature of the investment industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 11.06%
Debt Cost 3.95%
Equity Weight 88.94%
Equity Cost 7.88%
WACC 7.45%
Leverage 12.44%

11. Quality Control: Investor AB (publ) passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Crédit Agricole

A-Score: 7.5/10

Value: 8.4

Growth: 3.7

Quality: 6.9

Yield: 10.0

Momentum: 7.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
3i Group

A-Score: 6.9/10

Value: 3.9

Growth: 8.3

Quality: 9.6

Yield: 4.4

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Erste Bank

A-Score: 6.8/10

Value: 6.4

Growth: 4.6

Quality: 6.2

Yield: 7.5

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Investor AB

A-Score: 5.0/10

Value: 1.6

Growth: 4.8

Quality: 6.4

Yield: 3.8

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Partners Group Holding

A-Score: 4.7/10

Value: 0.7

Growth: 4.9

Quality: 7.4

Yield: 6.2

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
EQT

A-Score: 4.5/10

Value: 2.7

Growth: 7.1

Quality: 8.2

Yield: 1.2

Momentum: 4.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

321.6$

Current Price

321.6$

Potential

-0.00%

Expected Cash-Flows