As of June 19, 2025, Verbio Vereinigte Bioenergie AG's estimated intrinsic value ranges from $5.64 to $27.47 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $5.64 | -45.9% |
| Discounted Cash Flow (5Y) | $8.41 | -19.4% |
| Dividend Discount Model (Multi-Stage) | $12.68 | +21.5% |
| Earnings Power Value | $27.47 | +163.4% |
Is Verbio Vereinigte Bioenergie AG (VBK.DE) undervalued or overvalued?
With the current market price at $10.43, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Verbio Vereinigte Bioenergie 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 | 0.75 | 0.83 |
| Cost of equity | 6.6% | 8.9% |
| Cost of debt | 4.0% | 7.0% |
| Tax rate | 31.1% | 32.2% |
| Debt/Equity ratio | 0.28 | 0.28 |
| After-tax WACC | 5.8% | 8.0% |
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 | $8 | $726M | 82.9% |
| 10-Year Growth | $6 | $549M | 63.7% |
| 5-Year EBITDA | $10 | $837M | 85.2% |
| 10-Year EBITDA | $11 | $889M | 77.5% |
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 | $130M |
| Discount Rate (WACC) | 8.0% - 5.8% |
| Enterprise Value | $1,630M - $2,251M |
| Net Debt | $190M |
| Equity Value | $1,440M - $2,061M |
| Outstanding Shares | 64M |
| Fair Value | $23 - $32 |
| Selected Fair Value | $27.47 |
| Metric | Value |
|---|---|
| Market Capitalization | $665M |
| Enterprise Value | $855M |
| Trailing P/E | 0.00 |
| Forward P/E | 18.15 |
| Trailing EV/EBITDA | 4.20 |
| Current Dividend Yield | 185.30% |
| Dividend Growth Rate (5Y) | 0.20% |
| Debt-to-Equity Ratio | 0.28 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $1.69 |
| Discounted Cash Flow (5Y) | 29% | $2.10 |
| Dividend Discount Model (Multi-Stage) | 24% | $2.54 |
| Earnings Power Value | 12% | $2.75 |
| Weighted Average | 100% | $10.68 |
Based on our comprehensive valuation analysis, Verbio Vereinigte Bioenergie AG's weighted average intrinsic value is $10.68, which is approximately 2.4% above the current market price of $10.43.
Key investment considerations:
Given these factors, we believe Verbio Vereinigte Bioenergie AG is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.