As of August 2, 2025, Bureau Veritas SA has a Discounted Cash Flow (DCF) derived fair value of $27.14 per share. With the current market price at $26.44, this represents a potential upside of 2.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $25.13 |
| DCF Fair Value (10-year) | $27.14 |
| Potential Upside (5-year) | -4.9% |
| Potential Upside (10-year) | 2.7% |
| Discount Rate (WACC) | 5.9% - 7.6% |
Revenue is projected to grow from $6241 million in 12-2024 to $10108 million by 12-2034, representing a compound annual growth rate of approximately 4.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 6241 | 6% |
| 12-2025 | 6542 | 5% |
| 12-2026 | 6929 | 6% |
| 12-2027 | 7077 | 2% |
| 12-2028 | 7536 | 6% |
| 12-2029 | 7740 | 3% |
| 12-2030 | 8121 | 5% |
| 12-2031 | 8406 | 4% |
| 12-2032 | 9202 | 9% |
| 12-2033 | 9654 | 5% |
| 12-2034 | 10108 | 5% |
Net profit margin is expected to improve from 9% in 12-2024 to 9% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 589 | 9% |
| 12-2025 | 617 | 9% |
| 12-2026 | 653 | 9% |
| 12-2027 | 667 | 9% |
| 12-2028 | 711 | 9% |
| 12-2029 | 730 | 9% |
| 12-2030 | 766 | 9% |
| 12-2031 | 793 | 9% |
| 12-2032 | 868 | 9% |
| 12-2033 | 910 | 9% |
| 12-2034 | 953 | 9% |
with a 5-year average of $131 million. Projected CapEx is expected to maintain at approximately 2% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 142 |
| 12-2026 | 151 |
| 12-2027 | 158 |
| 12-2028 | 163 |
| 12-2029 | 170 |
| 12-2030 | 178 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 100 |
| Days Inventory | (303) |
| Days Payables | (3,735) |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 1095 | 288 | 156 | 478 | 173 |
| 2026 | 1160 | 305 | 165 | 25 | 665 |
| 2027 | 1189 | 311 | 168 | (67) | 776 |
| 2028 | 1260 | 332 | 179 | 203 | 546 |
| 2029 | 1297 | 340 | 184 | 19 | 754 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 25.13 | -4.9% |
| 10-Year DCF (Growth) | 27.14 | 2.7% |
| 5-Year DCF (EBITDA) | 12.57 | -52.5% |
| 10-Year DCF (EBITDA) | 17.12 | -35.2% |
Is Bureau Veritas SA (BVI.PA) a buy or a sell? Bureau Veritas SA is definitely a buy. Based on our DCF analysis, Bureau Veritas SA (BVI.PA) appears to be slightly undervalued with upside potential of 2.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a hold with potential to accumulate at the current market price of $26.44.