As of May 22, 2025, Kungsleden AB's estimated intrinsic value ranges from $14.74 to $384.24 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $135.33 | +12.4% |
| Discounted Cash Flow (5Y) | $129.45 | +7.5% |
| Dividend Discount Model (Multi-Stage) | $151.17 | +25.6% |
| Dividend Discount Model (Stable) | $384.24 | +219.1% |
| Earnings Power Value | $14.74 | -87.8% |
Is Kungsleden AB (KLED.ST) undervalued or overvalued?
With the current market price at $120.40, 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 Kungsleden AB'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 | 0.6% | 1.1% |
| Equity market risk premium | 5.2% | 6.2% |
| Adjusted beta | 0.98 | 1.13 |
| Cost of equity | 5.8% | 8.7% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 21.3% | 22.0% |
| Debt/Equity ratio | 0.72 | 0.72 |
| After-tax WACC | 4.7% | 6.5% |
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 | $129 | $47,671M | 88.8% |
| 10-Year Growth | $135 | $48,955M | 78.1% |
| 5-Year EBITDA | $138 | $49,447M | 89.2% |
| 10-Year EBITDA | $142 | $50,448M | 78.7% |
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 | $1,230M |
| Discount Rate (WACC) | 6.5% - 4.7% |
| Enterprise Value | $18,887M - $26,351M |
| Net Debt | $19,399M |
| Equity Value | $(512)M - $6,952M |
| Outstanding Shares | 218M |
| Fair Value | $(2) - $32 |
| Selected Fair Value | $14.74 |
| Metric | Value |
|---|---|
| Market Capitalization | $26296M |
| Enterprise Value | $47027M |
| Trailing P/E | 9.96 |
| Forward P/E | 16.49 |
| Trailing EV/EBITDA | 29.75 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -1.54% |
| Debt-to-Equity Ratio | 0.72 |
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% | $40.60 |
| Discounted Cash Flow (5Y) | 25% | $32.36 |
| Dividend Discount Model (Multi-Stage) | 20% | $30.23 |
| Dividend Discount Model (Stable) | 15% | $57.64 |
| Earnings Power Value | 10% | $1.47 |
| Weighted Average | 100% | $162.30 |
Based on our comprehensive valuation analysis, Kungsleden AB's weighted average intrinsic value is $162.30, which is approximately 34.8% above the current market price of $120.40.
Key investment considerations:
Given these factors, we believe Kungsleden AB is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.