Atte has published a company report on GRK 
GRK released a very strong Q2 result in terms of profitability. We believe that revenue growth will also strengthen in the second half of the year, and the record-high order backlog provides support for our forecasts for next year as well. In addition to the current order backlog, market conditions in the company’s operating countries remain largely positive, leading us to expect order intake to continue to be strong in the second half of the year as well. We believe the stock’s pricing is still reasonable, and the roughly 3–4% dividend yield makes the return expectation attractive. Following our forecast revisions, we are raising our target price to 23.0 euros (previously 20.0 euros). We maintain our “accumulate” recommendation.
Excerpts from the report:
Valuation Multiples
The valuation level we accept for the GRK share is approximately 11x–14x measured by the P/E ratio and 9x–12x measured by the EV/EBIT ratio. These levels correspond roughly to the 10-year averages of the company’s construction sector peers as well as the long-term medians of the Helsinki Stock Exchange. In our multiple analysis, we emphasize the enterprise value-based EV/EBIT metric due to the cash pile that has swelled following the listing and the rock-solid cash flow development of 2025.
According to our forecasts, GRK’s P/E ratios for 2026–2027 are at the ~11x level. The EV/EBIT ratios, which account for the excess cash, are at the 7x level, even though we have modeled significant working capital commitment for the company for 2026. Therefore, we believe the valuation picture is very attractive, especially on an EV basis, as the valuation multiples for both years are below our ranges. GRK is also relatively undervalued when examined using EV multiples. The P/E multiples are also within our ranges even without adjusting for the oversized cash position. We therefore see upside potential in GRK’s valuation multiples, which, combined with a dividend yield of approximately 3–4%, raises the return expectation clearly above our applied return requirement of just under 10%.