| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3.40 | -95 |
| Intrinsic value (DCF) | 177.60 | 143 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 61.70 | -15 |
Kinnevik AB (LSE: 0RH1.L) is a Stockholm-based venture capital firm specializing in growth capital investments across digital consumer businesses, e-commerce, healthcare, financial services, and more. Founded in 1936, Kinnevik operates globally with a strong focus on Europe, particularly the Nordics, while also investing in emerging markets like Latin America, Africa, and Asia. The firm targets disruptive, technology-driven consumer services, taking an active role in governance through board participation and long-term leadership in listed subsidiaries. With a diversified portfolio spanning digital marketplaces, education, and fintech, Kinnevik leverages its deep industry expertise to drive value creation. Despite recent financial challenges, including negative revenue and net income, the firm maintains a solid cash position (SEK 3.15 billion) and a notable dividend payout (SEK 23 per share), reflecting its commitment to shareholder returns. As a key player in European venture capital, Kinnevik remains strategically positioned to capitalize on digital transformation trends.
Kinnevik AB presents a high-risk, high-reward investment profile. The firm’s negative revenue (SEK -2.61B) and net income (SEK -2.62B) in the latest fiscal year highlight volatility inherent in its venture capital model, exacerbated by a beta of 1.39. However, its SEK 22.2B market cap and strong cash reserves (SEK 3.15B) provide a buffer for portfolio growth. The dividend yield (SEK 23/share) signals confidence in liquidity, but reliance on unrealized gains from private holdings introduces uncertainty. Investors should weigh Kinnevik’s niche in digital disruption—particularly in underserved markets—against sector-wide pressures on tech valuations. Long-term appeal hinges on successful exits from its e-commerce and fintech bets.
Kinnevik AB differentiates itself through a hybrid approach: acting as both a traditional VC and a long-term anchor investor in listed entities. Its competitive edge lies in deep regional expertise (Nordics, emerging markets) and hands-on portfolio management, contrasting with passive peers. However, the firm faces stiff competition from larger global venture firms with broader sector diversification. Kinnevik’s focus on consumer tech—while lucrative—exposes it to cyclical downturns, as seen in recent e-commerce corrections. Unlike pure-play VCs, its public market involvement (e.g., stakes in Zalando, Tele2) adds liquidity but also ties performance to volatile equities. The lack of debt (SEK 0) is a strength, but reliance on cash reserves limits firepower for new deals. Competitively, Kinnevik must balance its legacy holdings with faster-growing digital health and fintech bets to maintain relevance.