What is NXI.PA's Intrinsic value?

Nexity SA (NXI.PA) Intrinsic Value Analysis

Executive Summary

As of April 10, 2026, Nexity SA's estimated intrinsic value ranges from $63.85 to $63.85 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $63.85 +631.4%

Is Nexity SA (NXI.PA) undervalued or overvalued?

With the current market price at $8.73, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Nexity SA's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

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 3.0% 3.5%
Equity market risk premium 5.8% 6.8%
Adjusted beta 1.4 1.89
Cost of equity 11.2% 16.9%
Cost of debt 4.0% 7.0%
Tax rate 28.5% 32.6%
Debt/Equity ratio 4.01 4.01
After-tax WACC 4.5% 7.1%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $268M
Discount Rate (WACC) 7.1% - 4.5%
Enterprise Value $3,744M - $5,926M
Net Debt $1,251M
Equity Value $2,492M - $4,675M
Outstanding Shares 56M
Fair Value $44 - $83
Selected Fair Value $63.85

Key Financial Metrics

Metric Value
Market Capitalization $490M
Enterprise Value $1741M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 7.05
Current Dividend Yield 2861.34%
Dividend Growth Rate (5Y) -100.00%
Debt-to-Equity Ratio 4.01

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Earnings Power Value 100% $6.38
Weighted Average 100% $63.85

Investment Conclusion

Based on our comprehensive valuation analysis, Nexity SA's intrinsic value is $63.85, which is approximately 631.4% above the current market price of $8.73.

Key investment considerations:

  • Strong projected earnings growth (-6% to -1% margin)
  • Consistent cash flow generation

Given these factors, we believe Nexity SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.