As of May 23, 2025, Landis+Gyr Group AG has a Discounted Cash Flow (DCF) derived fair value of $36.64 per share. With the current market price at $52.00, this represents a potential upside of -29.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $28.29 |
| DCF Fair Value (10-year) | $36.64 |
| Potential Upside (5-year) | -45.6% |
| Potential Upside (10-year) | -29.5% |
| Discount Rate (WACC) | 5.8% - 8.2% |
Revenue is projected to grow from $1729 million in 03-2025 to $2688 million by 03-2035, representing a compound annual growth rate of approximately 4.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2025 | 1729 | 12% |
| 03-2026 | 1805 | 4% |
| 03-2027 | 1841 | 2% |
| 03-2028 | 1899 | 3% |
| 03-2029 | 1963 | 3% |
| 03-2030 | 2015 | 3% |
| 03-2031 | 2106 | 5% |
| 03-2032 | 2273 | 8% |
| 03-2033 | 2351 | 3% |
| 03-2034 | 2513 | 7% |
| 03-2035 | 2688 | 7% |
Net profit margin is expected to improve from -5% in 03-2025 to 2% by 03-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2025 | (85) | -5% |
| 03-2026 | (44) | -2% |
| 03-2027 | (24) | -1% |
| 03-2028 | (2) | 0% |
| 03-2029 | 20 | 1% |
| 03-2030 | 43 | 2% |
| 03-2031 | 45 | 2% |
| 03-2032 | 48 | 2% |
| 03-2033 | 50 | 2% |
| 03-2034 | 53 | 2% |
| 03-2035 | 57 | 2% |
with a 5-year average of $29 million. Projected CapEx is expected to maintain at approximately 2% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2026 | 30 |
| 03-2027 | 32 |
| 03-2028 | 33 |
| 03-2029 | 33 |
| 03-2030 | 34 |
| 03-2031 | 35 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 76 |
| Days Inventory | 69 |
| Days Payables | 56 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 20 | (7) | 33 | (27) | 21 |
| 2027 | 46 | (4) | 33 | 12 | 5 |
| 2028 | 73 | (0) | 34 | 26 | 14 |
| 2029 | 101 | 3 | 35 | 4 | 59 |
| 2030 | 130 | 7 | 36 | 14 | 73 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 28.29 | -45.6% |
| 10-Year DCF (Growth) | 36.64 | -29.5% |
| 5-Year DCF (EBITDA) | 20.97 | -59.7% |
| 10-Year DCF (EBITDA) | 29.74 | -42.8% |
Is Landis+Gyr Group AG (LAND.SW) a buy or a sell? Landis+Gyr Group AG is definitely a sell. Based on our DCF analysis, Landis+Gyr Group AG (LAND.SW) appears to be overvalued with upside potential of -29.5%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $52.00.