Knorr-Bremse Valuation

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

KBX (CHF109) is trading below our estimate of [[fair value]] (CHF185.91)

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: KBX (CHF109) is trading below our estimate of fair value (CHF185.91)

Significantly Below Fair Value: KBX is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As KBX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KBX. This is calculated by dividing KBX's market cap by their current earnings.
What is KBX's PE Ratio?
PE Ratio	19.5x
Earnings	€599.93m
Market Cap	€11.71b

KBX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	11.2x
PEG Ratio	1.8x

Price to Earnings Ratio vs Peers

How does KBX's PE Ratio compare to its peers?

The above table shows the PE ratio for KBX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26x
BUCN Bucher Industries	11.5x	-5.9%	CHF 3.4b
SRAIL Stadler Rail	15.9x	17.3%	CHF 2.0b
VACN VAT Group	51.4x	21.8%	CHF 10.3b
GF Georg Fischer	25.1x	19.3%	CHF 5.2b
KBX Knorr-Bremse	19.5x	10.8%	CHF 11.7b

Price-To-Earnings vs Peers: KBX is good value based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

How does KBX's PE Ratio compare vs other companies in the European Machinery Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: KBX is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the European Machinery industry average (17.5x).

Price to Earnings Ratio vs Fair Ratio

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

KBX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.5x
Fair PE Ratio	23x

Price-To-Earnings vs Fair Ratio: KBX is good value based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (23x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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