What is CEVI.ST's DCF valuation?

CellaVision AB (CEVI.ST) DCF Valuation Analysis

Executive Summary

As of October 25, 2025, CellaVision AB has a Discounted Cash Flow (DCF) derived fair value of $184.96 per share. With the current market price at $187.40, this represents a potential upside of -1.3%.

Key Metrics Value
DCF Fair Value (5-year) $160.98
DCF Fair Value (10-year) $184.96
Potential Upside (5-year) -14.1%
Potential Upside (10-year) -1.3%
Discount Rate (WACC) 5.5% - 8.2%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $723 million in 12-2024 to $1362 million by 12-2034, representing a compound annual growth rate of approximately 6.5%.

Fiscal Year Revenue (USD millions) Growth
12-2024 723 7%
12-2025 780 8%
12-2026 831 6%
12-2027 877 6%
12-2028 922 5%
12-2029 995 8%
12-2030 1061 7%
12-2031 1139 7%
12-2032 1219 7%
12-2033 1284 5%
12-2034 1362 6%

Profitability Projections

Net profit margin is expected to improve from 19% in 12-2024 to 19% by 12-2034, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2024 141 19%
12-2025 152 19%
12-2026 162 19%
12-2027 171 19%
12-2028 179 19%
12-2029 194 19%
12-2030 206 19%
12-2031 222 19%
12-2032 237 19%
12-2033 250 19%
12-2034 265 19%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $64 million. Projected CapEx is expected to maintain at approximately 10% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
12-2025 73
12-2026 79
12-2027 83
12-2028 85
12-2029 89
12-2030 95

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 53
Days Inventory 222
Days Payables 64

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
6M/2025 132 19 40 15 59
2026 284 42 84 9 148
2027 299 44 89 12 154
2028 311 46 94 15 156
2029 334 50 101 19 164

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 5.5% - 8.2%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 2.0% - 4.0%)
  • Terminal EV/EBITDA Multiple: 14.8x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 160.98 -14.1%
10-Year DCF (Growth) 184.96 -1.3%
5-Year DCF (EBITDA) 175.13 -6.5%
10-Year DCF (EBITDA) 199.55 6.5%

Enterprise Value Breakdown

  • 5-Year Model: $3,714M
  • 10-Year Model: $4,286M

Investment Conclusion

Is CellaVision AB (CEVI.ST) a buy or a sell? CellaVision AB is definitely a sell. Based on our DCF analysis, CellaVision AB (CEVI.ST) appears to be fairly valued with upside potential of -1.3%. 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:

  • Steady revenue growth (6.5% CAGR)
  • Strong free cash flow generation

Investors should consider a hold at the current market price of $187.40.