As of August 2, 2025, Schneider Electric SE's estimated intrinsic value ranges from $91.20 to $184.29 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $184.29 | -13.8% |
| Discounted Cash Flow (5Y) | $147.09 | -31.2% |
| Dividend Discount Model (Multi-Stage) | $124.83 | -41.6% |
| Dividend Discount Model (Stable) | $91.20 | -57.4% |
| Earnings Power Value | $98.40 | -54.0% |
Is Schneider Electric SE (SU.PA) undervalued or overvalued?
With the current market price at $213.90, 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 Schneider Electric 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 | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.89 | 1 |
| Cost of equity | 8.1% | 10.8% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 23.6% | 23.9% |
| Debt/Equity ratio | 0.11 | 0.11 |
| After-tax WACC | 7.7% | 10.1% |
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 | $147 | $92,474M | 72.8% |
| 10-Year Growth | $184 | $113,888M | 55.9% |
| 5-Year EBITDA | $150 | $93,990M | 73.3% |
| 10-Year EBITDA | $184 | $113,888M | 55.9% |
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 | $5,650M |
| Discount Rate (WACC) | 10.1% - 7.7% |
| Enterprise Value | $55,721M - $73,173M |
| Net Debt | $7,805M |
| Equity Value | $47,916M - $65,368M |
| Outstanding Shares | 576M |
| Fair Value | $83 - $114 |
| Selected Fair Value | $98.40 |
| Metric | Value |
|---|---|
| Market Capitalization | $123127M |
| Enterprise Value | $130932M |
| Trailing P/E | 28.84 |
| Forward P/E | 24.62 |
| Trailing EV/EBITDA | 9.25 |
| Current Dividend Yield | 144.35% |
| Dividend Growth Rate (5Y) | 8.57% |
| Debt-to-Equity Ratio | 0.11 |
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% | $55.29 |
| Discounted Cash Flow (5Y) | 25% | $36.77 |
| Dividend Discount Model (Multi-Stage) | 20% | $24.97 |
| Dividend Discount Model (Stable) | 15% | $13.68 |
| Earnings Power Value | 10% | $9.84 |
| Weighted Average | 100% | $140.54 |
Based on our comprehensive valuation analysis, Schneider Electric SE's intrinsic value is $140.54, which is approximately 34.3% below the current market price of $213.90.
Key investment considerations:
Given these factors, we believe Schneider Electric SE is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.