As of June 20, 2025, RIB Software SE's estimated intrinsic value ranges from $11.01 to $23.79 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $23.79 | -17.7% |
| Discounted Cash Flow (5Y) | $15.95 | -44.8% |
| Dividend Discount Model (Multi-Stage) | $16.29 | -43.6% |
| Dividend Discount Model (Stable) | $18.99 | -34.3% |
| Earnings Power Value | $11.01 | -61.9% |
Is RIB Software SE (RIB.DE) undervalued or overvalued?
With the current market price at $28.90, 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 RIB Software SE'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 | 2.0% | 2.5% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.74 | 0.85 |
| Cost of equity | 5.5% | 7.9% |
| Cost of debt | 4.0% | 4.8% |
| Tax rate | 37.4% | 37.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 5.5% | 7.8% |
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 | $16 | $631M | 89.1% |
| 10-Year Growth | $24 | $1,039M | 80.2% |
| 5-Year EBITDA | $22 | $956M | 92.8% |
| 10-Year EBITDA | $26 | $1,175M | 82.5% |
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 | $24M |
| Discount Rate (WACC) | 7.8% - 5.5% |
| Enterprise Value | $308M - $439M |
| Net Debt | $(200)M |
| Equity Value | $508M - $639M |
| Outstanding Shares | 52M |
| Fair Value | $10 - $12 |
| Selected Fair Value | $11.01 |
| Metric | Value |
|---|---|
| Market Capitalization | $1505M |
| Enterprise Value | $1306M |
| Trailing P/E | 92.26 |
| Forward P/E | 68.80 |
| Trailing EV/EBITDA | 13.40 |
| Current Dividend Yield | 38.50% |
| Dividend Growth Rate (5Y) | -5.58% |
| Debt-to-Equity Ratio | 0.01 |
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% | $7.14 |
| Discounted Cash Flow (5Y) | 25% | $3.99 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.26 |
| Dividend Discount Model (Stable) | 15% | $2.85 |
| Earnings Power Value | 10% | $1.10 |
| Weighted Average | 100% | $18.33 |
Based on our comprehensive valuation analysis, RIB Software SE's weighted average intrinsic value is $18.33, which is approximately 36.6% below the current market price of $28.90.
Key investment considerations:
Given these factors, we believe RIB Software SE is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.