Ferronordic stock has quietly turned into a comeback story. The share now trades at SEK81.6 after strong gains over the past quarter, and today’s Q2 print shows the recovery in the business is running ahead of where many investors had priced it in.

The headline is simple. Ferronordic has swung back to solid profitability with Q2 net profit of SEK45m and basic earnings per share of 3.08 SEK, alongside SEK1.6b of revenue. With the stock on a reported P/E of 15.2x and trailing twelve month earnings back in the black, the gap between old worries and new numbers has narrowed fast.

Is Ferronordic at SEK81.6 a genuine mispricing relative to its 15.2x P/E and the DCF reference value near SEK288, or is the gap justified by the risks flagged?…