As of June 14, 2025, Bravida Holding AB's estimated intrinsic value ranges from $90.99 to $120.31 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $113.71 | +26.1% |
| Discounted Cash Flow (5Y) | $107.99 | +19.7% |
| Dividend Discount Model (Multi-Stage) | $90.99 | +0.9% |
| Dividend Discount Model (Stable) | $114.15 | +26.6% |
| Earnings Power Value | $120.31 | +33.4% |
Is Bravida Holding AB (BRAV.ST) undervalued or overvalued?
With the current market price at $90.20, 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 Bravida Holding 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 | 0.62 | 0.8 |
| Cost of equity | 5.7% | 8.4% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 21.6% | 21.7% |
| Debt/Equity ratio | 0.17 | 0.17 |
| After-tax WACC | 5.3% | 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 | $108 | $24,249M | 80.8% |
| 10-Year Growth | $114 | $25,420M | 66.2% |
| 5-Year EBITDA | $47 | $11,690M | 60.2% |
| 10-Year EBITDA | $61 | $14,672M | 41.4% |
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 | $1,682M |
| Discount Rate (WACC) | 7.7% - 5.3% |
| Enterprise Value | $21,808M - $31,732M |
| Net Debt | $2,156M |
| Equity Value | $19,652M - $29,576M |
| Outstanding Shares | 205M |
| Fair Value | $96 - $145 |
| Selected Fair Value | $120.31 |
| Metric | Value |
|---|---|
| Market Capitalization | $18453M |
| Enterprise Value | $20609M |
| Trailing P/E | 17.07 |
| Forward P/E | 17.07 |
| Trailing EV/EBITDA | 5.25 |
| Current Dividend Yield | 386.93% |
| Dividend Growth Rate (5Y) | 11.80% |
| Debt-to-Equity Ratio | 0.17 |
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% | $34.11 |
| Discounted Cash Flow (5Y) | 25% | $27.00 |
| Dividend Discount Model (Multi-Stage) | 20% | $18.20 |
| Dividend Discount Model (Stable) | 15% | $17.12 |
| Earnings Power Value | 10% | $12.03 |
| Weighted Average | 100% | $108.46 |
Based on our comprehensive valuation analysis, Bravida Holding AB's weighted average intrinsic value is $108.46, which is approximately 20.2% above the current market price of $90.20.
Key investment considerations:
Given these factors, we believe Bravida Holding AB is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.