As of June 16, 2025, Carlo Gavazzi Holding AG's estimated intrinsic value ranges from $235.21 to $839.57 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $696.88 | +208.4% |
| Discounted Cash Flow (5Y) | $636.22 | +181.5% |
| Dividend Discount Model (Multi-Stage) | $525.49 | +132.5% |
| Dividend Discount Model (Stable) | $235.21 | +4.1% |
| Earnings Power Value | $839.57 | +271.5% |
Is Carlo Gavazzi Holding AG (GAV.SW) undervalued or overvalued?
With the current market price at $226.00, 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 Carlo Gavazzi Holding 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 | 0.58 | 0.8 |
| Cost of equity | 3.9% | 6.9% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 27.0% | 27.4% |
| Debt/Equity ratio | 0.04 | 0.04 |
| After-tax WACC | 3.9% | 6.7% |
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 | $636 | $385M | 80.9% |
| 10-Year Growth | $697 | $427M | 65.5% |
| 5-Year EBITDA | $454 | $259M | 71.6% |
| 10-Year EBITDA | $529 | $311M | 52.6% |
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 | $26M |
| Discount Rate (WACC) | 6.7% - 3.9% |
| Enterprise Value | $387M - $664M |
| Net Debt | $(55)M |
| Equity Value | $442M - $720M |
| Outstanding Shares | 1M |
| Fair Value | $639 - $1,040 |
| Selected Fair Value | $839.57 |
| Metric | Value |
|---|---|
| Market Capitalization | $156M |
| Enterprise Value | $101M |
| Trailing P/E | 19.58 |
| Forward P/E | 8.53 |
| Trailing EV/EBITDA | 7.35 |
| Current Dividend Yield | 363.66% |
| Dividend Growth Rate (5Y) | 0.00% |
| 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% | $209.06 |
| Discounted Cash Flow (5Y) | 25% | $159.05 |
| Dividend Discount Model (Multi-Stage) | 20% | $105.10 |
| Dividend Discount Model (Stable) | 15% | $35.28 |
| Earnings Power Value | 10% | $83.96 |
| Weighted Average | 100% | $592.46 |
Based on our comprehensive valuation analysis, Carlo Gavazzi Holding AG's weighted average intrinsic value is $592.46, which is approximately 162.1% above the current market price of $226.00.
Key investment considerations:
Given these factors, we believe Carlo Gavazzi Holding AG is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.