As of June 9, 2025, OVB Holding AG's estimated intrinsic value ranges from $20.21 to $41.44 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $35.61 | +52.2% |
| Discounted Cash Flow (5Y) | $32.25 | +37.8% |
| Dividend Discount Model (Multi-Stage) | $36.15 | +54.5% |
| Dividend Discount Model (Stable) | $41.44 | +77.1% |
| Earnings Power Value | $20.21 | -13.6% |
Is OVB Holding AG (O4B.DE) undervalued or overvalued?
With the current market price at $23.40, 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 OVB Holding 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 | 2.8% | 3.3% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.53 | 0.65 |
| Cost of equity | 5.5% | 7.7% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 28.3% | 29.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| After-tax WACC | 5.4% | 7.6% |
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 | $32 | $408M | 85.5% |
| 10-Year Growth | $36 | $456M | 73.4% |
| 5-Year EBITDA | $20 | $232M | 74.4% |
| 10-Year EBITDA | $23 | $283M | 57.1% |
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 | $15M |
| Discount Rate (WACC) | 7.6% - 5.4% |
| Enterprise Value | $197M - $277M |
| Net Debt | $(51)M |
| Equity Value | $248M - $328M |
| Outstanding Shares | 14M |
| Fair Value | $17 - $23 |
| Selected Fair Value | $20.21 |
| Metric | Value |
|---|---|
| Market Capitalization | $333M |
| Enterprise Value | $282M |
| Trailing P/E | 20.58 |
| Forward P/E | 16.11 |
| Trailing EV/EBITDA | 5.55 |
| Current Dividend Yield | 395.50% |
| Dividend Growth Rate (5Y) | 4.66% |
| Debt-to-Equity Ratio | 0.03 |
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% | $10.68 |
| Discounted Cash Flow (5Y) | 25% | $8.06 |
| Dividend Discount Model (Multi-Stage) | 20% | $7.23 |
| Dividend Discount Model (Stable) | 15% | $6.22 |
| Earnings Power Value | 10% | $2.02 |
| Weighted Average | 100% | $34.21 |
Based on our comprehensive valuation analysis, OVB Holding AG's weighted average intrinsic value is $34.21, which is approximately 46.2% above the current market price of $23.40.
Key investment considerations:
Given these factors, we believe OVB Holding AG is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.