DSM-Firmenich Valuation

Is DSFI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DSFI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DSFI (€101.8) is trading below our estimate of fair value (€113.2)

Significantly Below Fair Value: DSFI is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DSFI?

Key metric: As DSFI is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DSFI. This is calculated by dividing DSFI's market cap by their current revenue.
What is DSFI's PS Ratio?
PS Ratio2.2x
Sales€12.46b
Market Cap€27.18b

Price to Sales Ratio vs Peers

How does DSFI's PS Ratio compare to its peers?

The above table shows the PS ratio for DSFI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.5x
NSIS B Novonesis
8.2x10.1%DKK 181.2b
ASIANPAINT Asian Paints
6.9x8.5%₹2.4t
PPG PPG Industries
1.6x-1.3%US$28.4b
600309 Wanhua Chemical Group
1.3x13.0%CN¥242.2b
DSFI DSM-Firmenich
2.2x4.3%€27.2b

Price-To-Sales vs Peers: DSFI is good value based on its Price-To-Sales Ratio (2.2x) compared to the peer average (4.4x).


Price to Sales Ratio vs Industry

How does DSFI's PS Ratio compare vs other companies in the European Chemicals Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
DSFI 2.2xIndustry Avg. 1.0xNo. of Companies28PS01.22.43.64.86+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DSFI is expensive based on its Price-To-Sales Ratio (2.2x) compared to the European Chemicals industry average (1x).


Price to Sales Ratio vs Fair Ratio

What is DSFI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DSFI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.2x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: DSFI is expensive based on its Price-To-Sales Ratio (2.2x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DSFI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€101.80
€128.82
+26.5%
11.0%€146.00€78.00n/a21
Nov ’25€107.85
€129.91
+20.5%
11.6%€158.00€78.00n/a21
Oct ’25€123.30
€127.46
+3.4%
12.1%€158.00€78.00n/a22
Sep ’25€123.05
€126.78
+3.0%
12.0%€158.00€78.00n/a22
Aug ’25€118.50
€124.96
+5.5%
12.0%€158.00€78.00n/a22
Jul ’25€106.40
€122.92
+15.5%
12.7%€158.00€75.00n/a22
Jun ’25€104.70
€121.87
+16.4%
12.7%€158.00€75.00n/a22
May ’25€106.35
€119.49
+12.4%
13.3%€158.00€75.00n/a22
Apr ’25€104.70
€118.08
+12.8%
14.7%€158.00€70.00n/a22
Mar ’25€99.18
€118.26
+19.2%
15.0%€158.00€70.00n/a22
Feb ’25€98.06
€111.55
+13.8%
17.5%€158.00€70.00n/a22
Jan ’25€92.40
€112.78
+22.1%
18.3%€158.00€70.00n/a22
Dec ’24€87.04
€114.69
+31.8%
20.5%€182.00€70.00n/a22
Nov ’24€85.30
€116.42
+36.5%
19.9%€182.00€70.00€107.8522
Oct ’24€77.46
€123.35
+59.2%
18.7%€182.00€80.00€123.3022
Sep ’24€84.36
€124.90
+48.1%
17.4%€182.00€80.00€123.0522
Aug ’24€100.90
€129.48
+28.3%
14.9%€175.00€88.00€118.5018
Jul ’24€99.37
€141.10
+42.0%
12.8%€175.00€114.00€106.4017
Jun ’24n/a
€144.87
0%
9.7%€175.00€126.00€104.7010
May ’24n/a
€134.25
0%
1.9%€137.00€130.00€106.354

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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