As of May 24, 2025, Datacolor AG's estimated intrinsic value ranges from $873.86 to $1047.46 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1029.78 | +37.3% |
| Discounted Cash Flow (5Y) | $945.17 | +26.0% |
| Dividend Discount Model (Multi-Stage) | $972.54 | +29.7% |
| Dividend Discount Model (Stable) | $1047.46 | +39.7% |
| Earnings Power Value | $873.86 | +16.5% |
Is Datacolor AG (DCN.SW) undervalued or overvalued?
With the current market price at $750.00, 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 Datacolor AG'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 | 0.76 | 0.89 |
| Cost of equity | 4.9% | 7.4% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 7.1% | 11.5% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 4.7% | 5.9% |
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 | $1,128 | $165M | 82.1% |
| 10-Year Growth | $1,229 | $182M | 67.8% |
| 5-Year EBITDA | $783 | $110M | 73.1% |
| 10-Year EBITDA | $935 | $134M | 56.5% |
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 | $8M |
| Discount Rate (WACC) | 5.9% - 4.7% |
| Enterprise Value | $135M - $168M |
| Net Debt | $(16)M |
| Equity Value | $151M - $184M |
| Outstanding Shares | 0M |
| Fair Value | $939 - $1,147 |
| Selected Fair Value | $873.86 |
| Metric | Value |
|---|---|
| Market Capitalization | $121M |
| Enterprise Value | $107M |
| Trailing P/E | 13.24 |
| Forward P/E | 13.31 |
| Trailing EV/EBITDA | 8.90 |
| Current Dividend Yield | 242.18% |
| Dividend Growth Rate (5Y) | 8.96% |
| Debt-to-Equity Ratio | 0.87 |
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% | $308.93 |
| Discounted Cash Flow (5Y) | 25% | $236.29 |
| Dividend Discount Model (Multi-Stage) | 20% | $194.51 |
| Dividend Discount Model (Stable) | 15% | $157.12 |
| Earnings Power Value | 10% | $87.39 |
| Weighted Average | 100% | $984.24 |
Based on our comprehensive valuation analysis, Datacolor AG's weighted average intrinsic value is $984.24, which is approximately 31.2% above the current market price of $750.00.
Key investment considerations:
Given these factors, we believe Datacolor AG is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.