As of May 23, 2025, Landis+Gyr Group AG's estimated intrinsic value ranges from $9.82 to $66.77 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $36.64 | -30.5% |
| Discounted Cash Flow (5Y) | $28.29 | -46.3% |
| Dividend Discount Model (Multi-Stage) | $9.82 | -81.4% |
| Earnings Power Value | $66.77 | +26.7% |
Is Landis+Gyr Group AG (LAND.SW) undervalued or overvalued?
With the current market price at $52.70, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Landis+Gyr Group 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 | 1 | 1.15 |
| Cost of equity | 6.1% | 9.0% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 11.6% | 14.4% |
| Debt/Equity ratio | 0.19 | 0.19 |
| After-tax WACC | 5.8% | 8.2% |
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 | $34 | $1,149M | 88.1% |
| 10-Year Growth | $44 | $1,437M | 76.0% |
| 5-Year EBITDA | $26 | $911M | 85.0% |
| 10-Year EBITDA | $36 | $1,215M | 71.6% |
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 | $169M |
| Discount Rate (WACC) | 8.2% - 5.8% |
| Enterprise Value | $2,047M - $2,907M |
| Net Debt | $173M |
| Equity Value | $1,874M - $2,734M |
| Outstanding Shares | 29M |
| Fair Value | $65 - $95 |
| Selected Fair Value | $66.77 |
| Metric | Value |
|---|---|
| Market Capitalization | $1524M |
| Enterprise Value | $1668M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 10.70 |
| Current Dividend Yield | 402.25% |
| Dividend Growth Rate (5Y) | 3.45% |
| Debt-to-Equity Ratio | 0.19 |
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% | $10.99 |
| Discounted Cash Flow (5Y) | 29% | $7.07 |
| Dividend Discount Model (Multi-Stage) | 24% | $1.96 |
| Earnings Power Value | 12% | $6.68 |
| Weighted Average | 100% | $31.42 |
Based on our comprehensive valuation analysis, Landis+Gyr Group AG's weighted average intrinsic value is $31.42, which is approximately 40.4% below the current market price of $52.70.
Key investment considerations:
Given these factors, we believe Landis+Gyr Group AG is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.