As of June 10, 2025, Fraport AG Frankfurt Airport Services Worldwide's estimated intrinsic value ranges from $38.09 to $266.84 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $266.84 | +317.6% |
| Discounted Cash Flow (5Y) | $38.09 | -40.4% |
| Dividend Discount Model (Multi-Stage) | $98.04 | +53.4% |
| Dividend Discount Model (Stable) | $72.77 | +13.9% |
| Earnings Power Value | $43.35 | -32.2% |
Is Fraport AG Frankfurt Airport Services Worldwide (FRA.DE) undervalued or overvalued?
With the current market price at $63.90, 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 Fraport AG Frankfurt Airport Services Worldwide'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 | 0.96 | 1.2 |
| Cost of equity | 7.7% | 11.1% |
| Cost of debt | 4.0% | 5.0% |
| Tax rate | 24.5% | 26.2% |
| Debt/Equity ratio | 2.29 | 2.29 |
| After-tax WACC | 4.4% | 5.9% |
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 | $38 | $14,513M | 91.9% |
| 10-Year Growth | $267 | $35,666M | 87.7% |
| 5-Year EBITDA | $164 | $26,193M | 95.5% |
| 10-Year EBITDA | $268 | $35,739M | 87.8% |
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 | $761M |
| Discount Rate (WACC) | 5.9% - 4.4% |
| Enterprise Value | $12,833M - $17,167M |
| Net Debt | $10,991M |
| Equity Value | $1,842M - $6,176M |
| Outstanding Shares | 92M |
| Fair Value | $20 - $67 |
| Selected Fair Value | $43.35 |
| Metric | Value |
|---|---|
| Market Capitalization | $5909M |
| Enterprise Value | $16900M |
| Trailing P/E | 14.13 |
| Forward P/E | 11.53 |
| Trailing EV/EBITDA | 8.45 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -100.00% |
| Debt-to-Equity Ratio | 2.29 |
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% | $80.05 |
| Discounted Cash Flow (5Y) | 25% | $9.52 |
| Dividend Discount Model (Multi-Stage) | 20% | $19.61 |
| Dividend Discount Model (Stable) | 15% | $10.92 |
| Earnings Power Value | 10% | $4.34 |
| Weighted Average | 100% | $124.43 |
Based on our comprehensive valuation analysis, Fraport AG Frankfurt Airport Services Worldwide's weighted average intrinsic value is $124.43, which is approximately 94.7% above the current market price of $63.90.
Key investment considerations:
Given these factors, we believe Fraport AG Frankfurt Airport Services Worldwide is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.