As of May 28, 2025, KSB SE & Co KgaA's estimated intrinsic value ranges from $847.62 to $1915.56 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1283.63 | +51.9% |
| Discounted Cash Flow (5Y) | $1109.85 | +31.3% |
| Dividend Discount Model (Multi-Stage) | $1465.22 | +73.4% |
| Dividend Discount Model (Stable) | $847.62 | +0.3% |
| Earnings Power Value | $1915.56 | +126.7% |
Is KSB SE & Co KgaA (KSB.DE) undervalued or overvalued?
With the current market price at $845.00, 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 KSB SE & Co KgaA'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 | 0.8 | 0.84 |
| Cost of equity | 6.9% | 8.9% |
| Cost of debt | 4.0% | 5.2% |
| Tax rate | 21.0% | 27.3% |
| Debt/Equity ratio | 0.04 | 0.04 |
| After-tax WACC | 6.7% | 8.7% |
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 | $1,110 | $1,631M | 72.6% |
| 10-Year Growth | $1,284 | $1,935M | 56.5% |
| 5-Year EBITDA | $1,190 | $1,772M | 74.7% |
| 10-Year EBITDA | $1,357 | $2,064M | 59.2% |
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 | $231M |
| Discount Rate (WACC) | 8.7% - 6.7% |
| Enterprise Value | $2,643M - $3,439M |
| Net Debt | $(311)M |
| Equity Value | $2,954M - $3,750M |
| Outstanding Shares | 2M |
| Fair Value | $1,688 - $2,143 |
| Selected Fair Value | $1915.56 |
| Metric | Value |
|---|---|
| Market Capitalization | $1479M |
| Enterprise Value | $1168M |
| Trailing P/E | 12.52 |
| Forward P/E | 7.74 |
| Trailing EV/EBITDA | 4.90 |
| Current Dividend Yield | 319.16% |
| Dividend Growth Rate (5Y) | 31.95% |
| 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% | $385.09 |
| Discounted Cash Flow (5Y) | 25% | $277.46 |
| Dividend Discount Model (Multi-Stage) | 20% | $293.04 |
| Dividend Discount Model (Stable) | 15% | $127.14 |
| Earnings Power Value | 10% | $191.56 |
| Weighted Average | 100% | $1274.29 |
Based on our comprehensive valuation analysis, KSB SE & Co KgaA's weighted average intrinsic value is $1274.29, which is approximately 50.8% above the current market price of $845.00.
Key investment considerations:
Given these factors, we believe KSB SE & Co KgaA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.