As of August 2, 2025, Bureau Veritas SA's estimated intrinsic value ranges from $21.26 to $60.25 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $27.14 | +2.7% |
| Discounted Cash Flow (5Y) | $25.13 | -4.9% |
| Dividend Discount Model (Multi-Stage) | $21.87 | -17.3% |
| Dividend Discount Model (Stable) | $21.26 | -19.6% |
| Earnings Power Value | $60.25 | +127.9% |
Is Bureau Veritas SA (BVI.PA) undervalued or overvalued?
With the current market price at $26.44, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Bureau Veritas SA'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 | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.62 | 0.69 |
| Cost of equity | 6.6% | 8.7% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 31.8% | 32.1% |
| Debt/Equity ratio | 0.23 | 0.23 |
| After-tax WACC | 5.9% | 7.6% |
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 | $25 | $13,076M | 81.5% |
| 10-Year Growth | $27 | $13,988M | 65.4% |
| 5-Year EBITDA | $13 | $7,373M | 67.1% |
| 10-Year EBITDA | $17 | $9,441M | 48.7% |
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 | $1,933M |
| Discount Rate (WACC) | 7.6% - 5.9% |
| Enterprise Value | $25,281M - $32,745M |
| Net Debt | $1,669M |
| Equity Value | $23,612M - $31,076M |
| Outstanding Shares | 454M |
| Fair Value | $52 - $68 |
| Selected Fair Value | $60.25 |
| Metric | Value |
|---|---|
| Market Capitalization | $12000M |
| Enterprise Value | $13669M |
| Trailing P/E | 21.08 |
| Forward P/E | 19.45 |
| Trailing EV/EBITDA | 5.50 |
| Current Dividend Yield | 324.12% |
| Dividend Growth Rate (5Y) | 89.13% |
| Debt-to-Equity Ratio | 0.23 |
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% | $8.14 |
| Discounted Cash Flow (5Y) | 25% | $6.28 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.37 |
| Dividend Discount Model (Stable) | 15% | $3.19 |
| Earnings Power Value | 10% | $6.02 |
| Weighted Average | 100% | $28.01 |
Based on our comprehensive valuation analysis, Bureau Veritas SA's intrinsic value is $28.01, which is approximately 6.0% above the current market price of $26.44.
Key investment considerations:
Given these factors, we believe Bureau Veritas SA is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.