As of June 14, 2025, Eckert & Ziegler Strahlen und Medizintechnik AG's estimated intrinsic value ranges from $20.90 to $45.95 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $45.95 | -29.7% |
| Discounted Cash Flow (5Y) | $36.81 | -43.7% |
| Dividend Discount Model (Multi-Stage) | $35.07 | -46.3% |
| Dividend Discount Model (Stable) | $34.68 | -46.9% |
| Earnings Power Value | $20.90 | -68.0% |
Is Eckert & Ziegler Strahlen und Medizintechnik AG (EUZ.DE) undervalued or overvalued?
With the current market price at $65.35, 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 Eckert & Ziegler Strahlen und Medizintechnik 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 | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.86 | 1.04 |
| Cost of equity | 7.2% | 10.1% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 29.2% | 30.3% |
| Debt/Equity ratio | 0.04 | 0.04 |
| After-tax WACC | 7.0% | 9.9% |
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 | $37 | $714M | 80.2% |
| 10-Year Growth | $46 | $908M | 66.3% |
| 5-Year EBITDA | $47 | $922M | 84.7% |
| 10-Year EBITDA | $53 | $1,049M | 70.9% |
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 | $31M |
| Discount Rate (WACC) | 9.9% - 7.0% |
| Enterprise Value | $314M - $441M |
| Net Debt | $(65)M |
| Equity Value | $379M - $506M |
| Outstanding Shares | 21M |
| Fair Value | $18 - $24 |
| Selected Fair Value | $20.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $1383M |
| Enterprise Value | $1319M |
| Trailing P/E | 40.12 |
| Forward P/E | 31.24 |
| Trailing EV/EBITDA | 9.95 |
| Current Dividend Yield | 7.50% |
| Dividend Growth Rate (5Y) | -41.26% |
| Debt-to-Equity Ratio | 0.04 |
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% | $13.78 |
| Discounted Cash Flow (5Y) | 25% | $9.20 |
| Dividend Discount Model (Multi-Stage) | 20% | $7.01 |
| Dividend Discount Model (Stable) | 15% | $5.20 |
| Earnings Power Value | 10% | $2.09 |
| Weighted Average | 100% | $37.29 |
Based on our comprehensive valuation analysis, Eckert & Ziegler Strahlen und Medizintechnik AG's weighted average intrinsic value is $37.29, which is approximately 42.9% below the current market price of $65.35.
Key investment considerations:
Given these factors, we believe Eckert & Ziegler Strahlen und Medizintechnik AG is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.