Finland’s Top Undervalued Stocks to Buy in 2026: 5 Finnish Companies Worth Watching
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| Finland’s |
Worldreview1989 - Finland is not the first country most American investors think about when searching for undervalued stocks. The Finnish market is relatively small compared with the United States, but it contains several globally competitive companies in industrial technology, packaging, retail, pharmaceuticals, and clean energy.
For U.S. investors, the opportunity is particularly interesting because European equities have historically received less attention than U.S. mega-cap technology stocks. Recent market commentary has also highlighted renewed interest in European equities as investors look for diversification outside the U.S. market.
This article examines five Finnish-listed companies that appear attractive from a value, earnings, dividend, or turnaround perspective in 2026:
Valmet Oyj (HEL: VALMT)
Huhtamäki Oyj (HEL: HUH1V)
Kesko Oyj (HEL: KESKOB)
Fortum Oyj (HEL: FORTUM)
Orion Oyj (HEL: ORNBV)
The ranking emphasizes valuation, earnings quality, balance-sheet considerations, catalysts, dividends, and the risks that American investors should understand before buying.
Important: “Undervalued” does not mean guaranteed to rise. The stocks below are selected because their current valuation, earnings potential, assets, or business quality may offer an attractive risk/reward profile. This is educational analysis, not personalized investment advice.
Why American Investors Should Look at Finland
Finland has a relatively small domestic economy, but many Finnish listed companies generate a substantial portion of their revenue internationally.
That is important for U.S. investors.
Rather than simply buying exposure to the Finnish consumer economy, investors can obtain exposure to global themes such as:
industrial automation;
energy efficiency;
sustainable packaging;
infrastructure;
pharmaceuticals;
renewable electricity;
European consumer spending;
data-center and electrification investment.
The Finnish market can therefore be viewed as a collection of international businesses rather than simply a bet on Finland's GDP.
Another important consideration is valuation.
Some European companies trade at lower multiples than comparable U.S. companies, although the valuation gap can be justified by differences in growth, profitability, sector composition, and capital-market structure.
1. Valmet Oyj — The Best Value-Oriented Finnish Stock
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| Valmet Oyj |
Ticker: VALMT
Exchange: Nasdaq Helsinki
Sector: Industrial technology
Why Valmet stands out
Valmet is arguably the most interesting value candidate on this list.
The company supplies process technologies, automation systems, and lifecycle services to industries including pulp, paper, energy, and other process industries.
Its business model is particularly interesting because it combines large capital projects with a large installed base that can generate recurring service revenue.
That creates a potentially attractive combination of:
industrial technology + recurring services + global customers + dividend income.
Inderes' April 2026 research described Valmet as undervalued relative to historical valuation levels and estimated adjusted P/E ratios of approximately 11x for 2026 and 10x for 2027, with expected dividend yields above 5%.
The share subsequently recovered substantially. Inderes' company data showed Valmet around €27.62–€27.78 in August 2026, with a market capitalization of roughly €5.1 billion.
Q2 2026 financial performance
Valmet's second quarter showed meaningful improvement:
| Metric | Q2 2026 |
|---|---|
| Orders received | €1.373 billion |
| Net sales | €1.315 billion |
| Comparable EBITA | €152 million |
| Comparable EBITA margin | 11.5% |
| Order backlog | €4.3 billion |
Net sales increased 6%, while comparable EBITA increased 6%.
For the first six months of 2026, Valmet generated €2.56 billion of revenue and €266 million of comparable EBITA.
The biggest catalyst
One of the most interesting developments is Valmet's strategic review.
Management is evaluating whether its two major businesses could eventually be separated into independently listed companies:
Biomaterial Solutions and Services
Process Performance Solutions
The company explicitly said the review is intended to determine whether separation could create additional shareholder value.
That creates a potential sum-of-the-parts catalyst.
If two independent businesses receive higher valuation multiples than the combined company, shareholders could potentially benefit.
The problem
Valmet is not a risk-free value stock.
Orders declined 10% year over year in Q2, while first-half orders declined 14%. The company also warned that geopolitical and macroeconomic uncertainty continues to reduce visibility.
My assessment
Valuation: ★★★★☆
Business quality: ★★★★☆
Dividend appeal: ★★★★☆
Catalysts: ★★★★★
Risk: Medium
Verdict: Top Finnish value pick.
2. Huhtamäki — Attractive Packaging Value Play
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| Huhtamäki |
Ticker: HUH1V
Exchange: Nasdaq Helsinki
Sector: Packaging
Huhtamäki is less famous among American investors than companies such as PepsiCo or International Paper, but its business is highly relevant to global food and beverage consumption.
The company produces packaging solutions for food and beverages, including fiber, flexible, and foodservice packaging.
This is an attractive business because packaging demand tends to be relatively defensive.
People continue buying food even when economic growth slows.
Q2 2026 results
Huhtamäki reported:
Q2 revenue of approximately €1.009 billion;
comparable sales growth of 2%;
adjusted EBIT of €103.7 million;
adjusted EPS of €0.64.
Flexible Packaging was particularly strong, with comparable sales growth of 14%, while Fiber Packaging grew 7%.
The company's North American business remained weaker, however, with comparable sales declining 8% in Q2.
Why valuation matters
Inderes maintained a Buy recommendation after the Q2 results and a €36 target price, arguing that Huhtamäki's relatively low valuation, improving earnings outlook, and dividend yield above 4% created an attractive return profile.
Inderes' valuation data showed the stock around €31.62 in August 2026, while its 2026 estimates pointed toward a market capitalization of roughly €3.32 billion.
Earlier in 2026, Inderes estimated 2026 and 2027 adjusted P/E ratios of roughly 12x and 11x, respectively.
What makes Huhtamäki interesting?
The investment thesis is simple:
reasonable valuation + resilient demand + global operations + improving margins + dividend income.
The company is also pursuing growth in fiber packaging, where demand for more sustainable packaging solutions could provide a long-term structural tailwind.
Main risk
The company is exposed to:
consumer demand;
raw-material costs;
foreign-exchange movements;
North American economic conditions.
Currency movements already reduced Q2 revenue by €15.1 million compared with constant exchange-rate conditions.
My assessment
Valuation: ★★★★★
Business quality: ★★★★☆
Dividend appeal: ★★★★☆
Growth: ★★★★☆
Risk: Medium
Verdict: One of the clearest value opportunities in Finland.
3. Kesko — Finnish Retail and Technical Trade Recovery
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| Kesko |
Ticker: KESKOB
Exchange: Nasdaq Helsinki
Sector: Retail / Technical Trade
Kesko provides exposure to Finnish and Nordic consumption through grocery retail, building and technical trade.
For investors looking for a more defensive Finnish stock, Kesko deserves attention.
2026 earnings improvement
Kesko's 2026 outlook improved substantially.
Following its first-half results, management estimated 2026 comparable operating profit of:
€670 million–€730 million.
Previously, the company had forecast €650 million–€750 million.
Management expects operating conditions to improve across its divisions and countries of operation.
The Dahl acquisition
One of the most important strategic developments is Kesko's acquisition of Dahl's technical-trade businesses in Sweden, Norway, and Denmark.
The businesses being acquired generated nearly €2.1 billion of combined revenue in 2025, making it the largest transaction in Kesko's history.
This could strengthen Kesko's position in:
HVAC;
infrastructure;
construction;
technical trade.
Valuation
Kesko traded around €21.98 in August 2026.
Inderes' valuation data showed an estimated 2026 adjusted P/E of approximately 18.7x, declining toward 15.8x in 2027 and 14.5x in 2028. Its estimated dividend yield was around 4.3% for 2026 and above 5% in subsequent years.
Therefore, Kesko is not as obviously cheap as Huhtamäki or Valmet.
Its investment case instead relies on earnings normalization and the potential benefits of its technical-trade expansion.
Main risk
Kesko's balance sheet is more leveraged than the typical ultra-conservative value investor may prefer.
Inderes estimates gearing at approximately 122% in 2026, although the ratio is projected to decline in subsequent years.
My assessment
Valuation: ★★★☆☆
Business quality: ★★★★☆
Dividend appeal: ★★★★☆
Growth catalysts: ★★★★☆
Risk: Medium
Verdict: Attractive for investors seeking a combination of income and earnings recovery.
4. Fortum — Clean-Energy Income and Power-Demand Play
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| Fortum |
Ticker: FORTUM
Exchange: Nasdaq Helsinki
Sector: Utilities / Energy
Fortum is one of Finland's most recognizable energy companies.
Its investment case is fundamentally different from Valmet and Huhtamäki.
Instead of relying primarily on industrial earnings growth, Fortum provides exposure to Nordic electricity generation and the structural growth in electricity consumption.
Strong cash generation
Fortum's Q2 2026 figures included:
sales: €1.124 billion;
operating profit: €90 million;
net profit: €109 million;
operating cash flow: €324 million.
For H1 2026, net profit reached €530 million and operating cash flow was €679 million.
Long-term electricity demand
Fortum argues that electricity is expected to represent a significantly larger share of total energy consumption over the long term.
Potential demand drivers include:
data centers;
industrial electrification;
transportation;
heating and cooling;
green hydrogen;
energy efficiency.
That makes Fortum potentially interesting as an indirect play on Europe's electrification.
But is Fortum actually undervalued?
This is where investors need to be careful.
Fortum was trading around €20 in August 2026, while Inderes had a Reduce recommendation and a €21 target price following its July review.
Inderes had previously noted that Fortum's dividend yield was attractive, but valuation had become relatively demanding compared with the company's earnings-growth outlook.
Therefore, I would classify Fortum as:
fairly valued with potential upside catalysts, rather than a deep-value stock.
Main catalyst
The potential acquisition of Elmera could expand Fortum's strategic footprint in the Nordic energy market. Fortum's H1 report explicitly identified the proposed Elmera acquisition as part of its growth strategy.
My assessment
Valuation: ★★★☆☆
Business quality: ★★★★☆
Dividend appeal: ★★★★☆
Long-term theme: ★★★★★
Risk: Medium
Verdict: Better as an income/electricity-demand investment than as a pure value stock.
5. Orion — High-Quality Finnish Healthcare Compounder
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| orion |
Ticker: ORNBV
Exchange: Nasdaq Helsinki
Sector: Pharmaceuticals
Orion is Finland's major pharmaceutical company and offers something the other companies on this list do not:
healthcare exposure.
That makes it valuable for portfolio diversification.
Exceptional 2026 earnings
Orion's first-half 2026 performance was very strong.
The company reported:
| Metric | H1 2026 |
|---|---|
| Revenue | €939.3 million |
| Operating profit | €291.3 million |
| Basic EPS | €1.64 |
| Operating cash flow/share | €2.21 |
Revenue increased from €771 million in H1 2025, while operating profit increased from €182.5 million to €291.3 million.
Orion also raised its 2026 outlook:
Revenue: €2.0–€2.1 billion
Operating profit: €650–€750 million.
The problem for value investors
Orion's excellent performance has already been recognized by the market.
The stock traded around €78–€79 in August 2026 and had gained more than 20% year to date. Its market capitalization was approximately €11 billion.
Therefore, Orion is not a classic deep-value opportunity.
It is better described as a high-quality company that may still offer reasonable long-term value if earnings remain strong.
Investment thesis
Potential catalysts include:
pharmaceutical pipeline development;
successful commercialization;
animal-health expansion;
oncology opportunities;
additional milestones for development assets.
The company reported several development milestones involving ODM-212 during H1 2026, while its animal-health business received FDA approval for Tessie.
My assessment
Valuation: ★★★☆☆
Business quality: ★★★★★
Growth: ★★★★★
Defensiveness: ★★★★★
Risk: Medium
Verdict: The quality pick rather than the deepest-value pick.
Ranking Finland's Potentially Undervalued Stocks
| Rank | Company | Ticker | Investment Style | My View |
|---|---|---|---|---|
| 1 | Valmet | VALMT | Industrial value | ⭐⭐⭐⭐⭐ |
| 2 | Huhtamäki | HUH1V | Value + dividend | ⭐⭐⭐⭐⭐ |
| 3 | Kesko | KESKOB | Recovery + income | ⭐⭐⭐⭐ |
| 4 | Fortum | FORTUM | Energy + dividend | ⭐⭐⭐⭐ |
| 5 | Orion | ORNBV | Quality growth | ⭐⭐⭐⭐ |
What American Investors Are Saying
Investor discussions can provide a useful—but imperfect—view of how individual investors perceive Finnish stocks.
Nokia is a good example.
Some Reddit investors have become increasingly interested in Nokia because of its exposure to AI infrastructure, optical networks, and cloud customers. One recent discussion focused on the idea that Nokia's current investment cycle could sacrifice short-term free cash flow in exchange for greater long-term capacity and earnings potential.
Another Q2 discussion highlighted Nokia's 2026 growth in AI and cloud-related sales and the strong performance of its Optical Networks and IP Networks businesses.
However, professional analysis presents a much more cautious picture.
Inderes' July 2026 research argued that Nokia's valuation had become demanding, with estimated 2028 P/E around 20x, and reiterated a Sell recommendation despite strong AI-related orders.
That contrast illustrates an important lesson for American investors:
A stock can look cheap based on its history while simultaneously being expensive based on future earnings.
For this reason, I would not include Nokia among the top five Finnish value stocks at current valuations, despite its compelling AI-networking story.
Financial Analysis: What Makes a Finnish Stock “Undervalued”?
American investors should avoid using P/E alone.
A better framework is:
1. Earnings multiple
Look for companies where the forward P/E is below:
historical average;
comparable companies;
reasonable growth-adjusted valuation.
2. Free cash flow
A cheap P/E means little if accounting earnings fail to convert into cash.
3. Dividend yield
For mature Finnish companies, dividends can represent a significant portion of total shareholder return.
4. Balance sheet
Debt matters particularly for industrial companies and retailers.
5. Earnings catalysts
A stock can remain cheap for years without a catalyst.
The strongest value opportunities generally combine:
low valuation + improving earnings + catalyst.
That is why Valmet and Huhtamäki are particularly interesting.
A Hypothetical $10,000 Finnish Value Portfolio
An American investor wanting diversified Finnish exposure could construct a hypothetical portfolio like this:
| Stock | Allocation | $10,000 Investment |
|---|---|---|
| Valmet | 30% | $3,000 |
| Huhtamäki | 25% | $2,500 |
| Kesko | 20% | $2,000 |
| Fortum | 15% | $1,500 |
| Orion | 10% | $1,000 |
| Total | 100% | $10,000 |
This is an illustrative portfolio, not a recommendation tailored to an individual investor.
The rationale is to place greater weight on the two stocks with the clearest valuation arguments while maintaining exposure to retail, energy, and healthcare.
Risks U.S. Investors Must Understand
Finnish stocks have several risks that may not be obvious to American investors.
Currency risk
If you buy shares denominated in euros, your return in U.S. dollars depends on both:
stock performance + EUR/USD movement.
A Finnish stock can rise in euros while producing a smaller return in dollars if the euro weakens.
Smaller market liquidity
Some Helsinki-listed stocks have substantially less trading volume than major U.S. stocks.
This can result in:
wider bid/ask spreads;
greater volatility;
more difficult execution for large orders.
European economic exposure
Many Finnish companies depend heavily on European industrial and consumer conditions.
Geopolitical risk
Finland's geographic position makes European security developments particularly relevant.
Dividend taxation
U.S. investors should also investigate Finnish withholding taxes and how foreign taxes interact with their U.S. tax situation. The actual tax outcome can depend on account type, tax treaty treatment, and individual circumstances.
Final Verdict
If the objective is to identify Finland's most interesting undervalued stocks for 2026, I would focus first on Valmet and Huhtamäki.
🥇 Valmet — Best overall value opportunity
Valmet combines:
global industrial exposure;
recurring services;
an €4.3 billion order backlog;
improving Q2 profitability;
potentially attractive valuation;
a possible corporate-separation catalyst.
Its strategic review could become an important source of shareholder value if management determines that two independent companies would be worth more than the combined entity.
🥈 Huhtamäki — Best value + dividend combination
Huhtamäki offers:
defensive packaging demand;
strong profitability;
improving flexible and fiber packaging businesses;
a relatively modest valuation;
more than 4% potential dividend yield according to current analyst estimates.
Its Q2 performance strengthened the argument that earnings growth may be returning.
🥉 Kesko — Best recovery candidate
Kesko is attractive for investors who believe Nordic consumption and construction-related activity will continue recovering.
The Dahl acquisition adds another potential growth engine.
Fortum — Best electricity-demand/income play
Fortum is more fairly valued, but its clean electricity generation and exposure to rising Nordic power demand make it strategically interesting.
Orion — Best quality company
Orion may be the highest-quality business on this list, but its strong 2026 performance means investors should be more disciplined about the entry valuation.
Bottom Line for American Investors
The most important takeaway is that Finland's best investment opportunities in 2026 are not necessarily the stocks with the lowest share prices or lowest headline P/E ratios.
The more compelling opportunities are companies where:
valuation + financial quality + earnings improvement + a credible catalyst
come together.
On that basis, Valmet and Huhtamäki currently offer the strongest value cases, while Kesko provides a recovery opportunity, Fortum provides energy exposure, and Orion provides high-quality healthcare diversification.
For a U.S. investor building an international portfolio, these companies can be interesting precisely because they provide exposure to business models and sectors that are less concentrated in the American mega-cap technology ecosystem.
Investor reminder: Before purchasing a Finnish stock, verify the latest company filing, share price, exchange rate, dividend policy, withholding-tax treatment, and valuation. Analyst price targets are estimates, not guarantees.
About the Author
David Mulyana is the founder and editor of WorldReview1989, an independent publication dedicated to finance, investing, insurance, business, technology, and digital marketing.
He researches and writes in-depth articles that help readers understand complex financial topics through clear explanations, practical insights, and data-driven analysis. His editorial focus includes stock market investing, cryptocurrencies, banking, personal finance, business insurance, real estate, startup strategies, and emerging technology trends.
Every article published on WorldReview1989 is created with a commitment to accuracy, transparency, and reader value. Content is reviewed regularly to reflect the latest market developments, industry updates, and publicly available information from trusted sources.
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About WorldReview1989
WorldReview1989 provides educational content for readers seeking reliable information about finance, investment opportunities, insurance, business strategies, and technology. The website aims to simplify complex financial concepts and empower readers to make informed decisions.
Disclaimer: The information published on WorldReview1989 is for educational and informational purposes only. It should not be considered financial, legal, tax, or investment advice. Readers should consult qualified professionals before making financial decisions.
David Mulyana writes about stocks, financial markets, investment strategies, insurance and emerging-market opportunities, with a focus on helping readers understand financial data and investment risks
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