Nestlé S.A.

SWX:NESN Stock Report

Market Cap: CHF 201.0b

Nestlé Valuation

Is NESN 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 NESN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NESN (CHF78.18) is trading below our estimate of fair value (CHF169.01)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NESN. This is calculated by dividing NESN's market cap by their current earnings.
What is NESN's PE Ratio?
PE Ratio17.9x
EarningsCHF 11.20b
Market CapCHF 201.02b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NESN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.5x
LISN Chocoladefabriken Lindt & Sprüngli
33.5x6.2%CHF 23.0b
BARN Barry Callebaut
38.2x24.2%CHF 7.3b
EMMN Emmi
21.5x13.0%CHF 4.3b
BELL Bell Food Group
12.9x-0.7%CHF 1.7b
NESN Nestlé
17.9x4.9%CHF 201.0b

Price-To-Earnings vs Peers: NESN is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (26.5x).

Price to Earnings Ratio vs Industry

How does NESN's PE Ratio compare vs other companies in the European Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NESN 17.9xIndustry Avg. 13.5xNo. of Companies18PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NESN is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the European Food industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is NESN'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.

NESN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.9x
Fair PE Ratio25.1x

Price-To-Earnings vs Fair Ratio: NESN is good value based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (25.1x).

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 NESN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 78.18
CHF 92.57
+18.4%
9.3%CHF 111.00CHF 80.00n/a23
Nov ’25CHF 82.72
CHF 92.83
+12.2%
9.4%CHF 111.00CHF 80.00n/a23
Oct ’25CHF 84.92
CHF 97.93
+15.3%
9.3%CHF 120.00CHF 84.00n/a23
Sep ’25CHF 91.02
CHF 100.52
+10.4%
9.5%CHF 120.00CHF 87.00n/a23
Aug ’25CHF 89.14
CHF 100.61
+12.9%
8.6%CHF 120.00CHF 87.00n/a23
Jul ’25CHF 91.88
CHF 106.04
+15.4%
9.3%CHF 123.00CHF 86.00n/a23
Jun ’25CHF 95.56
CHF 107.48
+12.5%
8.7%CHF 123.00CHF 86.00n/a23
May ’25CHF 92.20
CHF 108.33
+17.5%
9.2%CHF 124.00CHF 84.50n/a23
Apr ’25CHF 95.75
CHF 108.80
+13.6%
8.9%CHF 124.00CHF 84.50n/a23
Mar ’25CHF 92.54
CHF 108.50
+17.2%
8.7%CHF 124.00CHF 86.00n/a24
Feb ’25CHF 98.35
CHF 112.31
+14.2%
10.2%CHF 126.00CHF 86.00n/a24
Jan ’25CHF 97.51
CHF 113.00
+15.9%
9.8%CHF 127.00CHF 86.00n/a24
Dec ’24CHF 98.95
CHF 115.38
+16.6%
8.4%CHF 130.00CHF 97.00n/a24
Nov ’24CHF 99.38
CHF 116.65
+17.4%
8.1%CHF 130.00CHF 97.00CHF 82.7223
Oct ’24CHF 103.74
CHF 119.00
+14.7%
9.1%CHF 135.00CHF 97.00CHF 84.9223
Sep ’24CHF 105.46
CHF 120.06
+13.8%
8.0%CHF 135.00CHF 97.00CHF 91.0225
Aug ’24CHF 106.88
CHF 120.02
+12.3%
8.3%CHF 135.00CHF 97.00CHF 89.1424
Jul ’24CHF 107.60
CHF 121.14
+12.6%
8.0%CHF 135.00CHF 98.00CHF 91.8824
Jun ’24CHF 108.78
CHF 121.83
+12.0%
7.8%CHF 135.00CHF 98.00CHF 95.5624
May ’24CHF 114.52
CHF 121.29
+5.9%
8.3%CHF 135.00CHF 95.00CHF 92.2024
Apr ’24CHF 111.46
CHF 119.62
+7.3%
8.3%CHF 135.00CHF 95.00CHF 95.7524
Mar ’24CHF 105.60
CHF 120.08
+13.7%
8.0%CHF 135.00CHF 100.00CHF 92.5425
Feb ’24CHF 111.02
CHF 119.95
+8.0%
8.2%CHF 135.00CHF 100.00CHF 98.3524
Jan ’24CHF 107.14
CHF 118.75
+10.8%
9.1%CHF 135.00CHF 95.00CHF 97.5124
Dec ’23CHF 113.72
CHF 119.04
+4.7%
9.3%CHF 135.00CHF 95.00CHF 98.9524
Nov ’23CHF 108.44
CHF 119.36
+10.1%
9.4%CHF 135.00CHF 95.00CHF 99.3825

Analyst Forecast: Target price is less than 20% higher than the current share price.

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