Sto SE KGaA Valuation

Q: What is the Fair Price of STO3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

STO3 (€112.6) is trading above our estimate of [[fair value]] (€104.48)

Is STO3 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-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 STO3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: STO3 (€112.6) is trading above our estimate of fair value (€104.48)

Significantly Below Fair Value: STO3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for STO3?

Key metric: As STO3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for STO3. This is calculated by dividing STO3's market cap by their current earnings.
What is STO3's PE Ratio?
PE Ratio	11x
Earnings	€66.02m
Market Cap	€723.57m

STO3 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	0.4x
Enterprise Value/EBITDA	4.5x
PEG Ratio	1.4x

Price to Earnings Ratio vs Peers

How does STO3's PE Ratio compare to its peers?

The above table shows the PE ratio for STO3 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	28.6x
HEI Heidelberg Materials	11.4x	7.3%	€21.2b
ACT AlzChem Group	11.7x	12.6%	€586.2m
SIM0 SIMONA	11.4x	n/a	€342.0m
SDF K+S	80x	61.3%	€2.0b
STO3 Sto SE KGaA	11x	7.8%	€723.6m

Price-To-Earnings vs Peers: STO3 is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (28.6x).

Price to Earnings Ratio vs Industry

How does STO3's PE Ratio compare vs other companies in the European Basic Materials Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: STO3 is good value based on its Price-To-Earnings Ratio (11x) compared to the European Basic Materials industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is STO3'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.

STO3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11x
Fair PE Ratio	12.2x

Price-To-Earnings vs Fair Ratio: STO3 is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (12.2x).

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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