As of June 8, 2025, Vitrolife AB's estimated intrinsic value ranges from $105.92 to $191.76 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $191.76 | +21.8% |
| Discounted Cash Flow (5Y) | $158.62 | +0.8% |
| Dividend Discount Model (Multi-Stage) | $111.19 | -29.4% |
| Dividend Discount Model (Stable) | $133.97 | -14.9% |
| Earnings Power Value | $105.92 | -32.7% |
Is Vitrolife AB (VITR.ST) undervalued or overvalued?
With the current market price at $157.40, 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 Vitrolife AB'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 | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.59 | 0.62 |
| Cost of equity | 5.5% | 7.3% |
| Cost of debt | 4.0% | 6.8% |
| Tax rate | 22.8% | 24.4% |
| Debt/Equity ratio | 0.1 | 0.1 |
| After-tax WACC | 5.3% | 7.1% |
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 | $159 | $22,383M | 86.4% |
| 10-Year Growth | $192 | $26,871M | 75.9% |
| 5-Year EBITDA | $107 | $15,387M | 80.2% |
| 10-Year EBITDA | $137 | $19,404M | 66.7% |
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 | $925M |
| Discount Rate (WACC) | 7.1% - 5.3% |
| Enterprise Value | $13,001M - $17,487M |
| Net Debt | $897M |
| Equity Value | $12,104M - $16,590M |
| Outstanding Shares | 135M |
| Fair Value | $89 - $122 |
| Selected Fair Value | $105.92 |
| Metric | Value |
|---|---|
| Market Capitalization | $21320M |
| Enterprise Value | $22217M |
| Trailing P/E | 42.81 |
| Forward P/E | 39.04 |
| Trailing EV/EBITDA | 13.30 |
| Current Dividend Yield | 63.32% |
| Dividend Growth Rate (5Y) | 3.30% |
| Debt-to-Equity Ratio | 0.10 |
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% | $57.53 |
| Discounted Cash Flow (5Y) | 25% | $39.66 |
| Dividend Discount Model (Multi-Stage) | 20% | $22.24 |
| Dividend Discount Model (Stable) | 15% | $20.10 |
| Earnings Power Value | 10% | $10.59 |
| Weighted Average | 100% | $150.11 |
Based on our comprehensive valuation analysis, Vitrolife AB's weighted average intrinsic value is $150.11, which is approximately 4.6% below the current market price of $157.40.
Key investment considerations:
Given these factors, we believe Vitrolife AB is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.