Valeo Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: VSA (€5.35) is trading below our estimate of fair value (€11.53)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VSA. This is calculated by dividing VSA's market cap by their current earnings.
What is VSA's PE Ratio?
PE Ratio9.1x
Earnings€243.00m
Market Cap€2.21b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VSA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.7x
SHA0 Schaeffler
29.7x71.5%€4.3b
HLE HELLA GmbH KGaA
28.6x17.1%€9.4b
SFQ SAF-Holland
8.2x14.3%€630.1m
CON Continental
12.4x23.4%€12.5b
VSA Valeo
9.1x47.7%€2.2b

Price-To-Earnings vs Peers: VSA is good value based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (31.3x).


Price to Earnings Ratio vs Industry

How does VSA's PE Ratio compare vs other companies in the European Auto Components Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
VSA 9.1xIndustry Avg. 9.2xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VSA is good value based on its Price-To-Earnings Ratio (9.1x) compared to the European Auto Components industry average (11x).


Price to Earnings Ratio vs Fair Ratio

What is VSA'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.

VSA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.1x
Fair PE Ratio22.5x

Price-To-Earnings vs Fair Ratio: VSA is good value based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.5x).


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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