As of May 23, 2025, Christian Dior SE's estimated intrinsic value ranges from $220.06 to $961.05 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $961.05 | +111.3% |
| Discounted Cash Flow (5Y) | $817.35 | +79.7% |
| Dividend Discount Model (Multi-Stage) | $633.96 | +39.4% |
| Dividend Discount Model (Stable) | $220.06 | -51.6% |
| Earnings Power Value | $891.72 | +96.1% |
Is Christian Dior SE (CDI.PA) undervalued or overvalued?
With the current market price at $454.80, 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 Christian Dior SE'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 | 1.25 | 1.27 |
| Cost of equity | 10.2% | 12.7% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 26.7% | 27.6% |
| Debt/Equity ratio | 0.48 | 0.48 |
| After-tax WACC | 7.9% | 9.6% |
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 | $817 | $185,512M | 67.3% |
| 10-Year Growth | $961 | $211,451M | 47.8% |
| 5-Year EBITDA | $1,216 | $257,458M | 76.4% |
| 10-Year EBITDA | $1,294 | $271,480M | 59.4% |
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 | $17,231M |
| Discount Rate (WACC) | 9.6% - 7.9% |
| Enterprise Value | $179,060M - $218,813M |
| Net Debt | $37,972M |
| Equity Value | $141,088M - $180,841M |
| Outstanding Shares | 181M |
| Fair Value | $782 - $1,002 |
| Selected Fair Value | $891.72 |
| Metric | Value |
|---|---|
| Market Capitalization | $82096M |
| Enterprise Value | $120068M |
| Trailing P/E | 15.76 |
| Forward P/E | 5.93 |
| Trailing EV/EBITDA | 10.15 |
| Current Dividend Yield | 276.29% |
| Dividend Growth Rate (5Y) | 29.65% |
| Debt-to-Equity Ratio | 0.48 |
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% | $288.31 |
| Discounted Cash Flow (5Y) | 25% | $204.34 |
| Dividend Discount Model (Multi-Stage) | 20% | $126.79 |
| Dividend Discount Model (Stable) | 15% | $33.01 |
| Earnings Power Value | 10% | $89.17 |
| Weighted Average | 100% | $741.63 |
Based on our comprehensive valuation analysis, Christian Dior SE's weighted average intrinsic value is $741.63, which is approximately 63.1% above the current market price of $454.80.
Key investment considerations:
Given these factors, we believe Christian Dior SE is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.