As of August 2, 2025, Hermes International SCA's estimated intrinsic value ranges from $526.64 to $1240.33 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1240.33 | -40.3% |
| Discounted Cash Flow (5Y) | $1039.42 | -50.0% |
| Dividend Discount Model (Multi-Stage) | $892.74 | -57.0% |
| Dividend Discount Model (Stable) | $673.07 | -67.6% |
| Earnings Power Value | $526.64 | -74.7% |
Is Hermes International SCA (RMS.PA) undervalued or overvalued?
With the current market price at $2078.00, 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 Hermes International SCA'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 | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.93 | 0.97 |
| Cost of equity | 8.4% | 10.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 28.5% | 29.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 8.4% | 10.5% |
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 | $1,039 | $101,940M | 77.9% |
| 10-Year Growth | $1,240 | $123,150M | 61.3% |
| 5-Year EBITDA | $934 | $90,842M | 75.3% |
| 10-Year EBITDA | $1,142 | $112,740M | 57.8% |
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 | $4,455M |
| Discount Rate (WACC) | 10.5% - 8.4% |
| Enterprise Value | $42,267M - $53,344M |
| Net Debt | $(7,792)M |
| Equity Value | $50,059M - $61,136M |
| Outstanding Shares | 106M |
| Fair Value | $474 - $579 |
| Selected Fair Value | $526.64 |
| Metric | Value |
|---|---|
| Market Capitalization | $219374M |
| Enterprise Value | $211582M |
| Trailing P/E | 48.96 |
| Forward P/E | 41.01 |
| Trailing EV/EBITDA | 9.00 |
| Current Dividend Yield | 128.50% |
| Dividend Growth Rate (5Y) | 53.67% |
| 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% | $372.10 |
| Discounted Cash Flow (5Y) | 25% | $259.86 |
| Dividend Discount Model (Multi-Stage) | 20% | $178.55 |
| Dividend Discount Model (Stable) | 15% | $100.96 |
| Earnings Power Value | 10% | $52.66 |
| Weighted Average | 100% | $964.13 |
Based on our comprehensive valuation analysis, Hermes International SCA's intrinsic value is $964.13, which is approximately 53.6% below the current market price of $2078.00.
Key investment considerations:
Given these factors, we believe Hermes International SCA is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.