As of June 6, 2025, Equasens SA's estimated intrinsic value ranges from $61.02 to $92.38 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $92.38 | +81.5% |
| Discounted Cash Flow (5Y) | $69.86 | +37.2% |
| Dividend Discount Model (Multi-Stage) | $81.93 | +61.0% |
| Dividend Discount Model (Stable) | $88.14 | +73.2% |
| Earnings Power Value | $61.02 | +19.9% |
Is Equasens SA (EQS.PA) undervalued or overvalued?
With the current market price at $50.90, 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 Equasens 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 | 0.25 | 0.38 |
| Cost of equity | 4.5% | 6.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 18.9% | 20.3% |
| Debt/Equity ratio | 0.06 | 0.06 |
| After-tax WACC | 4.4% | 6.4% |
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 | $70 | $1,090M | 85.4% |
| 10-Year Growth | $92 | $1,432M | 75.4% |
| 5-Year EBITDA | $39 | $618M | 74.3% |
| 10-Year EBITDA | $54 | $855M | 58.8% |
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 | $50M |
| Discount Rate (WACC) | 6.4% - 4.4% |
| Enterprise Value | $783M - $1,129M |
| Net Debt | $30M |
| Equity Value | $752M - $1,099M |
| Outstanding Shares | 15M |
| Fair Value | $50 - $72 |
| Selected Fair Value | $61.02 |
| Metric | Value |
|---|---|
| Market Capitalization | $772M |
| Enterprise Value | $803M |
| Trailing P/E | 21.31 |
| Forward P/E | 18.74 |
| Trailing EV/EBITDA | 7.20 |
| Current Dividend Yield | 250.21% |
| Dividend Growth Rate (5Y) | 8.52% |
| Debt-to-Equity Ratio | 0.06 |
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% | $27.71 |
| Discounted Cash Flow (5Y) | 25% | $17.46 |
| Dividend Discount Model (Multi-Stage) | 20% | $16.39 |
| Dividend Discount Model (Stable) | 15% | $13.22 |
| Earnings Power Value | 10% | $6.10 |
| Weighted Average | 100% | $80.89 |
Based on our comprehensive valuation analysis, Equasens SA's weighted average intrinsic value is $80.89, which is approximately 58.9% above the current market price of $50.90.
Key investment considerations:
Given these factors, we believe Equasens SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.