As of May 28, 2025, Compagnie Financiere Tradition SA's estimated intrinsic value ranges from $308.61 to $403.90 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $351.51 | +50.9% |
| Discounted Cash Flow (5Y) | $308.61 | +32.5% |
| Dividend Discount Model (Multi-Stage) | $364.37 | +56.4% |
| Dividend Discount Model (Stable) | $354.73 | +52.2% |
| Earnings Power Value | $403.90 | +73.3% |
Is Compagnie Financiere Tradition SA (CFT.SW) undervalued or overvalued?
With the current market price at $233.00, 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 Compagnie Financiere Tradition 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 | 1.0% | 1.5% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.58 | 0.69 |
| Cost of equity | 3.9% | 6.2% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 17.7% | 19.2% |
| Debt/Equity ratio | 0.18 | 0.18 |
| After-tax WACC | 3.8% | 5.8% |
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 | $309 | $2,454M | 87.7% |
| 10-Year Growth | $352 | $2,801M | 74.0% |
| 5-Year EBITDA | $142 | $1,103M | 72.6% |
| 10-Year EBITDA | $187 | $1,474M | 50.6% |
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 | $148M |
| Discount Rate (WACC) | 5.8% - 3.8% |
| Enterprise Value | $2,569M - $3,881M |
| Net Debt | $(42)M |
| Equity Value | $2,612M - $3,924M |
| Outstanding Shares | 8M |
| Fair Value | $323 - $485 |
| Selected Fair Value | $403.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $1885M |
| Enterprise Value | $1843M |
| Trailing P/E | 16.31 |
| Forward P/E | 14.48 |
| Trailing EV/EBITDA | 6.45 |
| Current Dividend Yield | 242.35% |
| Dividend Growth Rate (5Y) | 6.69% |
| Debt-to-Equity Ratio | 0.18 |
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% | $105.45 |
| Discounted Cash Flow (5Y) | 25% | $77.15 |
| Dividend Discount Model (Multi-Stage) | 20% | $72.87 |
| Dividend Discount Model (Stable) | 15% | $53.21 |
| Earnings Power Value | 10% | $40.39 |
| Weighted Average | 100% | $349.08 |
Based on our comprehensive valuation analysis, Compagnie Financiere Tradition SA's weighted average intrinsic value is $349.08, which is approximately 49.8% above the current market price of $233.00.
Key investment considerations:
Given these factors, we believe Compagnie Financiere Tradition SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.