As of June 21, 2025, home24 SE's estimated intrinsic value ranges from $4.89 to $49.26 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $49.26 | +554.2% |
| Discounted Cash Flow (5Y) | $4.89 | -35.1% |
| Dividend Discount Model (Multi-Stage) | $9.40 | +24.8% |
| Earnings Power Value | $5.29 | -29.7% |
Is home24 SE (H24.DE) undervalued or overvalued?
With the current market price at $7.53, 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 home24 SE'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 | 5.5% | 6.5% |
| Adjusted beta | 0.63 | 0.76 |
| Cost of equity | 6.0% | 8.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 0.4% | 0.5% |
| Debt/Equity ratio | 0.74 | 0.74 |
| After-tax WACC | 5.6% | 7.0% |
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 | $5 | $269M | 111.4% |
| 10-Year Growth | $49 | $1,765M | 91.7% |
| 5-Year EBITDA | $3 | $206M | 114.8% |
| 10-Year EBITDA | $14 | $574M | 74.5% |
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 | $18M |
| Discount Rate (WACC) | 7.0% - 5.6% |
| Enterprise Value | $251M - $314M |
| Net Debt | $104M |
| Equity Value | $147M - $210M |
| Outstanding Shares | 34M |
| Fair Value | $4 - $6 |
| Selected Fair Value | $5.29 |
| Metric | Value |
|---|---|
| Market Capitalization | $254M |
| Enterprise Value | $358M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 6.45 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.74 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $14.78 |
| Discounted Cash Flow (5Y) | 29% | $1.22 |
| Dividend Discount Model (Multi-Stage) | 24% | $1.88 |
| Earnings Power Value | 12% | $0.53 |
| Weighted Average | 100% | $21.66 |
Based on our comprehensive valuation analysis, home24 SE's weighted average intrinsic value is $21.66, which is approximately 187.6% above the current market price of $7.53.
Key investment considerations:
Given these factors, we believe home24 SE is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.