As of June 20, 2025, Eles Semiconductor Equipment SpA's estimated intrinsic value ranges from $0.91 to $3.48 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2.42 | +7.7% |
| Discounted Cash Flow (5Y) | $1.36 | -39.7% |
| Dividend Discount Model (Multi-Stage) | $1.56 | -30.5% |
| Dividend Discount Model (Stable) | $0.91 | -59.6% |
| Earnings Power Value | $3.48 | +54.7% |
Is Eles Semiconductor Equipment SpA (ELES.MI) undervalued or overvalued?
With the current market price at $2.25, the stock appears to be moderately 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 Eles Semiconductor Equipment SpA'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 | 3.7% | 4.2% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.86 | 1.21 |
| Cost of equity | 10.8% | 15.9% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 29.4% | 34.0% |
| Debt/Equity ratio | 0.59 | 0.59 |
| After-tax WACC | 8.1% | 11.2% |
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 | $27M | 89.5% |
| 10-Year Growth | $2 | $41M | 70.0% |
| 5-Year EBITDA | $2 | $39M | 92.8% |
| 10-Year EBITDA | $3 | $51M | 75.6% |
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 | $5M |
| Discount Rate (WACC) | 11.2% - 8.1% |
| Enterprise Value | $47M - $64M |
| Net Debt | $9M |
| Equity Value | $38M - $55M |
| Outstanding Shares | 13M |
| Fair Value | $3 - $4 |
| Selected Fair Value | $3.48 |
| Metric | Value |
|---|---|
| Market Capitalization | $30M |
| Enterprise Value | $39M |
| Trailing P/E | 24.08 |
| Forward P/E | 17.07 |
| Trailing EV/EBITDA | 8.15 |
| Current Dividend Yield | 62.96% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.59 |
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% | $0.73 |
| Discounted Cash Flow (5Y) | 25% | $0.34 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.31 |
| Dividend Discount Model (Stable) | 15% | $0.14 |
| Earnings Power Value | 10% | $0.35 |
| Weighted Average | 100% | $1.86 |
Based on our comprehensive valuation analysis, Eles Semiconductor Equipment SpA's weighted average intrinsic value is $1.86, which is approximately 17.2% below the current market price of $2.25.
Key investment considerations:
Given these factors, we believe Eles Semiconductor Equipment SpA is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.