As of May 24, 2025, Sartorius Stedim Biotech SA's estimated intrinsic value ranges from $20.83 to $171.85 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $171.85 | -9.9% |
| Discounted Cash Flow (5Y) | $100.58 | -47.3% |
| Dividend Discount Model (Multi-Stage) | $88.95 | -53.4% |
| Dividend Discount Model (Stable) | $44.34 | -76.8% |
| Earnings Power Value | $20.83 | -89.1% |
Is Sartorius Stedim Biotech SA (DIM.PA) undervalued or overvalued?
With the current market price at $190.75, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Sartorius Stedim Biotech 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 | 0.81 | 0.98 |
| Cost of equity | 7.7% | 10.7% |
| Cost of debt | 4.5% | 6.6% |
| Tax rate | 22.2% | 23.9% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 7.2% | 9.9% |
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 | $101 | $12,015M | 83.6% |
| 10-Year Growth | $172 | $18,951M | 72.4% |
| 5-Year EBITDA | $157 | $17,545M | 88.8% |
| 10-Year EBITDA | $223 | $23,884M | 78.1% |
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 | $355M |
| Discount Rate (WACC) | 9.9% - 7.2% |
| Enterprise Value | $3,566M - $4,939M |
| Net Debt | $2,225M |
| Equity Value | $1,341M - $2,714M |
| Outstanding Shares | 97M |
| Fair Value | $14 - $28 |
| Selected Fair Value | $20.83 |
| Metric | Value |
|---|---|
| Market Capitalization | $18566M |
| Enterprise Value | $20791M |
| Trailing P/E | 90.87 |
| Forward P/E | 71.74 |
| Trailing EV/EBITDA | 15.05 |
| Current Dividend Yield | 34.79% |
| Dividend Growth Rate (5Y) | 20.96% |
| Debt-to-Equity Ratio | 0.15 |
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% | $51.55 |
| Discounted Cash Flow (5Y) | 25% | $25.14 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.79 |
| Dividend Discount Model (Stable) | 15% | $6.65 |
| Earnings Power Value | 10% | $2.08 |
| Weighted Average | 100% | $103.22 |
Based on our comprehensive valuation analysis, Sartorius Stedim Biotech SA's weighted average intrinsic value is $103.22, which is approximately 45.9% below the current market price of $190.75.
Key investment considerations:
Given these factors, we believe Sartorius Stedim Biotech SA is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.