Vestas Wind Systems A/S

DB:VWSA Stock Report

Market Cap: €13.3b

Vestas Wind Systems Valuation

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

Below Fair Value: VWSA (€4.28) is trading below our estimate of fair value (€10.66)

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

Key Valuation Metric

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

Key metric: As VWSA is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VWSA. This is calculated by dividing VWSA's market cap by their current revenue.
What is VWSA's PS Ratio?
PS Ratio0.8x
Sales€15.93b
Market Cap€13.34b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VWSA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.6x
ENR Siemens Energy
1x7.3%€35.7b
NDX1 Nordex
0.4x5.1%€2.8b
PNE3 PNE
6.8x19.5%€841.1m
EKT Energiekontor
2.2x27.9%€558.8m
VWSA Vestas Wind Systems
0.8x10.7%€99.5b

Price-To-Sales vs Peers: VWSA is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

How does VWSA's PS Ratio compare vs other companies in the DE Electrical Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
VAR1 Varta
0.1x4.3%US$110.69m
C0M Compleo Charging Solutions
0.1x27.6%US$15.58m
No more companies available in this PS range
VWSA 0.8xIndustry Avg. 1.0xNo. of Companies3PS00.81.62.43.24+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VWSA is good value based on its Price-To-Sales Ratio (0.8x) compared to the European Electrical industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is VWSA'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.

VWSA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: VWSA is expensive based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

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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