As of December 15, 2025, Elma Electronic AG's estimated intrinsic value ranges from $703.55 to $7555.65 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1728.49 | +37.2% |
| Discounted Cash Flow (5Y) | $1619.28 | +28.5% |
| Dividend Discount Model (Multi-Stage) | $1769.88 | +40.5% |
| Dividend Discount Model (Stable) | $7555.65 | +499.7% |
| Earnings Power Value | $703.55 | -44.2% |
Is Elma Electronic AG (ELMN.SW) undervalued or overvalued?
With the current market price at $1260.00, 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 Elma Electronic 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 | 0.43 | 0.53 |
| Cost of equity | 3.1% | 5.2% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 13.8% | 17.6% |
| Debt/Equity ratio | 0.08 | 0.08 |
| After-tax WACC | 3.2% | 5.1% |
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 | $1,619 | $378M | 91.3% |
| 10-Year Growth | $1,728 | $403M | 82.0% |
| 5-Year EBITDA | $969 | $228M | 85.7% |
| 10-Year EBITDA | $1,125 | $264M | 72.6% |
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 | $7M |
| Discount Rate (WACC) | 5.1% - 3.2% |
| Enterprise Value | $128M - $206M |
| Net Debt | $5M |
| Equity Value | $123M - $201M |
| Outstanding Shares | 0M |
| Fair Value | $533 - $874 |
| Selected Fair Value | $703.55 |
| Metric | Value |
|---|---|
| Market Capitalization | $290M |
| Enterprise Value | $295M |
| Trailing P/E | 34.34 |
| Forward P/E | 29.31 |
| Trailing EV/EBITDA | 12.85 |
| Current Dividend Yield | 15.77% |
| Dividend Growth Rate (5Y) | 0.00% |
| 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% | $518.55 |
| Discounted Cash Flow (5Y) | 25% | $404.82 |
| Dividend Discount Model (Multi-Stage) | 20% | $353.98 |
| Dividend Discount Model (Stable) | 15% | $1133.35 |
| Earnings Power Value | 10% | $70.36 |
| Weighted Average | 100% | $2481.05 |
Based on our comprehensive valuation analysis, Elma Electronic AG's intrinsic value is $2481.05, which is approximately 96.9% above the current market price of $1260.00.
Key investment considerations:
Given these factors, we believe Elma Electronic AG is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.