As of May 23, 2025, Byggmax Group AB's estimated intrinsic value ranges from $23.30 to $378.40 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $41.50 | -21.2% |
| Discounted Cash Flow (5Y) | $37.80 | -28.3% |
| Dividend Discount Model (Multi-Stage) | $23.30 | -55.8% |
| Dividend Discount Model (Stable) | $55.06 | +4.5% |
| Earnings Power Value | $378.40 | +618.0% |
Is Byggmax Group AB (BMAX.ST) undervalued or overvalued?
With the current market price at $52.70, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Byggmax Group AB's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.72 | 0.92 |
| Cost of equity | 6.2% | 9.1% |
| Cost of debt | 4.3% | 7.8% |
| Tax rate | 22.1% | 22.2% |
| Debt/Equity ratio | 0.82 | 0.82 |
| After-tax WACC | 4.9% | 7.7% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $38 | $4,798M | 88.3% |
| 10-Year Growth | $42 | $5,015M | 76.7% |
| 5-Year EBITDA | $(1,234) | $2,190M | 74.3% |
| 10-Year EBITDA | $0 | $2,585M | 54.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1,490M |
| Discount Rate (WACC) | 7.7% - 4.9% |
| Enterprise Value | $19,303M - $30,232M |
| Net Debt | $2,582M |
| Equity Value | $16,721M - $27,650M |
| Outstanding Shares | 59M |
| Fair Value | $285 - $472 |
| Selected Fair Value | $378.40 |
| Metric | Value |
|---|---|
| Market Capitalization | $3090M |
| Enterprise Value | $5672M |
| Trailing P/E | 30.29 |
| Forward P/E | 44.13 |
| Trailing EV/EBITDA | 5.60 |
| Current Dividend Yield | 96.23% |
| Dividend Growth Rate (5Y) | -27.68% |
| Debt-to-Equity Ratio | 0.82 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $12.45 |
| Discounted Cash Flow (5Y) | 25% | $9.45 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.66 |
| Dividend Discount Model (Stable) | 15% | $8.26 |
| Earnings Power Value | 10% | $37.84 |
| Weighted Average | 100% | $72.66 |
Based on our comprehensive valuation analysis, Byggmax Group AB's weighted average intrinsic value is $72.66, which is approximately 37.9% above the current market price of $52.70.
Key investment considerations:
Given these factors, we believe Byggmax Group AB is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.