As of June 21, 2025, Europcar Mobility Group SA's estimated intrinsic value ranges from $0.32 to $1.88 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $0.58 | +14.1% |
| Dividend Discount Model (Multi-Stage) | $1.02 | +100.3% |
| Dividend Discount Model (Stable) | $1.88 | +270.2% |
| Earnings Power Value | $0.32 | -37.0% |
Is Europcar Mobility Group SA (EUCAR.PA) undervalued or overvalued?
With the current market price at $0.51, 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 Europcar Mobility Group 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 | 2.6% | 3.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.41 | 0.57 |
| Cost of equity | 4.8% | 7.2% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 22.7% | 32.3% |
| Debt/Equity ratio | 1.63 | 1.63 |
| After-tax WACC | 4.2% | 4.8% |
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 | $(1,234) | $(18,011)M | 93.2% |
| 10-Year Growth | $1 | $6,270M | 116.4% |
| 5-Year EBITDA | $(1,234) | $715M | 271.0% |
| 10-Year EBITDA | $(1,234) | $1,720M | 159.6% |
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 | $223M |
| Discount Rate (WACC) | 4.8% - 4.2% |
| Enterprise Value | $4,630M - $5,312M |
| Net Debt | $3,366M |
| Equity Value | $1,263M - $1,946M |
| Outstanding Shares | 5,000M |
| Fair Value | $0 - $0 |
| Selected Fair Value | $0.32 |
| Metric | Value |
|---|---|
| Market Capitalization | $2545M |
| Enterprise Value | $5911M |
| Trailing P/E | 17.19 |
| Forward P/E | 53.39 |
| Trailing EV/EBITDA | 4.10 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.63 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 40% | $0.17 |
| Dividend Discount Model (Multi-Stage) | 27% | $0.20 |
| Dividend Discount Model (Stable) | 20% | $0.28 |
| Earnings Power Value | 13% | $0.03 |
| Weighted Average | 100% | $0.92 |
Based on our comprehensive valuation analysis, Europcar Mobility Group SA's weighted average intrinsic value is $0.92, which is approximately 81.5% above the current market price of $0.51.
Key investment considerations:
Given these factors, we believe Europcar Mobility Group SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.