Even though Clavister has developed security software with a focus on firewalls to the enterprise sector for more than 15 years, the investment case is strongly coupled to the new sector, telecom. Within telecom, there is potential for “game changing” deals and Clavister are well positioned in the ongoing industry transformation. This is due to the partnership with Nokia (integral part of Nokia NetGuard Security), Clavister’s unique business model and the leading product (a security virtual network function (VNF)). We believe the market underestimates the long-term business value within telecom and thus consequently undervaluing the company. Our DCF-valuation indicates a value range of SEK 12-89 with a base case of SEK 41 per share.