As of August 2, 2025, Dassault Systemes SE's estimated intrinsic value ranges from $12.44 to $18.80 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $17.47 | -37.5% |
| Discounted Cash Flow (5Y) | $14.35 | -48.6% |
| Dividend Discount Model (Multi-Stage) | $12.44 | -55.5% |
| Dividend Discount Model (Stable) | $15.79 | -43.5% |
| Earnings Power Value | $18.80 | -32.7% |
Is Dassault Systemes SE (DSY.PA) undervalued or overvalued?
With the current market price at $27.94, 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 Dassault Systemes 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 | 0.84 | 0.93 |
| Cost of equity | 7.9% | 10.3% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 21.5% | 23.7% |
| Debt/Equity ratio | 0.08 | 0.08 |
| After-tax WACC | 7.5% | 9.8% |
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 | $14 | $17,780M | 74.8% |
| 10-Year Growth | $17 | $21,976M | 57.9% |
| 5-Year EBITDA | $12 | $14,356M | 68.8% |
| 10-Year EBITDA | $15 | $18,547M | 50.1% |
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 | $2,024M |
| Discount Rate (WACC) | 9.8% - 7.5% |
| Enterprise Value | $20,621M - $26,915M |
| Net Debt | $(1,510)M |
| Equity Value | $22,131M - $28,426M |
| Outstanding Shares | 1,344M |
| Fair Value | $16 - $21 |
| Selected Fair Value | $18.80 |
| Metric | Value |
|---|---|
| Market Capitalization | $37562M |
| Enterprise Value | $36052M |
| Trailing P/E | 22.96 |
| Forward P/E | 29.35 |
| Trailing EV/EBITDA | 6.75 |
| Current Dividend Yield | 91.21% |
| Dividend Growth Rate (5Y) | 13.48% |
| Debt-to-Equity Ratio | 0.08 |
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% | $5.24 |
| Discounted Cash Flow (5Y) | 25% | $3.59 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.49 |
| Dividend Discount Model (Stable) | 15% | $2.37 |
| Earnings Power Value | 10% | $1.88 |
| Weighted Average | 100% | $15.56 |
Based on our comprehensive valuation analysis, Dassault Systemes SE's intrinsic value is $15.56, which is approximately 44.3% below the current market price of $27.94.
Key investment considerations:
Given these factors, we believe Dassault Systemes SE is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.