As of May 22, 2025, Mikron Holding AG has a Discounted Cash Flow (DCF) derived fair value of $45.84 per share. With the current market price at $16.50, this represents a potential upside of 177.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $42.18 |
| DCF Fair Value (10-year) | $45.84 |
| Potential Upside (5-year) | 155.6% |
| Potential Upside (10-year) | 177.8% |
| Discount Rate (WACC) | 4.4% - 6.3% |
Revenue is projected to grow from $374 million in 12-2024 to $526 million by 12-2034, representing a compound annual growth rate of approximately 3.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 374 | 1% |
| 12-2025 | 392 | 5% |
| 12-2026 | 400 | 2% |
| 12-2027 | 409 | 2% |
| 12-2028 | 421 | 3% |
| 12-2029 | 430 | 2% |
| 12-2030 | 442 | 3% |
| 12-2031 | 479 | 8% |
| 12-2032 | 489 | 2% |
| 12-2033 | 516 | 6% |
| 12-2034 | 526 | 2% |
Net profit margin is expected to improve from 7% in 12-2024 to 8% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 28 | 7% |
| 12-2025 | 31 | 8% |
| 12-2026 | 31 | 8% |
| 12-2027 | 32 | 8% |
| 12-2028 | 33 | 8% |
| 12-2029 | 34 | 8% |
| 12-2030 | 35 | 8% |
| 12-2031 | 38 | 8% |
| 12-2032 | 38 | 8% |
| 12-2033 | 40 | 8% |
| 12-2034 | 41 | 8% |
with a 5-year average of $15 million. Projected CapEx is expected to maintain at approximately 5% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 16 |
| 12-2026 | 16 |
| 12-2027 | 18 |
| 12-2028 | 20 |
| 12-2029 | 20 |
| 12-2030 | 21 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 28 |
| Days Inventory | 101 |
| Days Payables | 36 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 49 | 2 | 19 | 6 | 21 |
| 2026 | 49 | 2 | 20 | 3 | 24 |
| 2027 | 52 | 2 | 20 | (0) | 30 |
| 2028 | 55 | 2 | 21 | 3 | 29 |
| 2029 | 56 | 2 | 21 | 2 | 31 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 42.18 | 155.6% |
| 10-Year DCF (Growth) | 45.84 | 177.8% |
| 5-Year DCF (EBITDA) | 26.82 | 62.6% |
| 10-Year DCF (EBITDA) | 32.50 | 97.0% |
Is Mikron Holding AG (MIKN.SW) a buy or a sell? Mikron Holding AG is definitely a buy. Based on our DCF analysis, Mikron Holding AG (MIKN.SW) appears to be significantly undervalued with upside potential of 177.8%. 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 a strong buy at the current market price of $16.50.