Essity AB Class B

ESSITY B: XSTO (SWE)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	SEK 672.00	Pfqmw	Ynshnhhj

Initiating on Essity With a No-Moat Rating; Shares Trade at a Premium to Our SEK 232 FVE

Diana Radu

Aug 2, 2022

We initiate coverage of Essity with a SEK 232 fair value estimate, a no-moat rating, and Standard Capital Allocation Rating. Our Medium Uncertainty Rating reflects the firm’s susceptibility to raw material price volatility and the resulting fluctuations in profitability and operating cash flows. We believe shares are expensive at current levels, trading at an 11% premium to our fair value estimate.

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