Covestro AG

DB:1COV Stock Report

Market Cap: €10.7b

Covestro Valuation

Is 1COV 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 1COV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€146.08
Fair Value
61.5% undervalued intrinsic discount
10
Number of Analysts

Below Fair Value: 1COV (€56.2) is trading below our estimate of fair value (€146.08)

Significantly Below Fair Value: 1COV is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1COV?

Key metric: As 1COV is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1COV. This is calculated by dividing 1COV's market cap by their current revenue.
What is 1COV's PS Ratio?
PS Ratio0.8x
Sales€14.15b
Market Cap€10.69b

Price to Sales Ratio vs Peers

How does 1COV's PS Ratio compare to its peers?

The above table shows the PS ratio for 1COV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
EVK Evonik Industries
0.5x2.4%€7.6b
SY1 Symrise
2.8x5.7%€13.8b
WCH Wacker Chemie
0.5x4.8%€3.2b
ACT AlzChem Group
1.2x6.8%€651.3m
1COV Covestro
0.8x4.1%€10.7b

Price-To-Sales vs Peers: 1COV is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does 1COV's PS Ratio compare vs other companies in the European Chemicals Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
1COV 0.8xIndustry Avg. 1.1xNo. of Companies30PS01.22.43.64.86+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1COV is good value based on its Price-To-Sales Ratio (0.8x) compared to the European Chemicals industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is 1COV'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.

1COV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: 1COV is expensive based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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 1COV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€56.20
€61.80
+10.0%
1.0%€62.00€60.00n/a10
Jan ’26€56.12
€61.90
+10.3%
0.5%€62.00€61.00n/a10
Dec ’25€57.60
€60.92
+5.8%
4.2%€62.00€53.00n/a12
Nov ’25€58.12
€60.08
+3.4%
6.3%€62.00€50.00n/a13
Oct ’25€58.44
€57.71
-1.2%
7.4%€62.00€50.00n/a14
Sep ’25€55.46
€57.00
+2.8%
7.6%€62.00€50.00n/a14
Aug ’25€54.86
€57.00
+3.9%
7.6%€62.00€50.00n/a14
Jul ’25€54.82
€54.57
-0.5%
13.5%€62.00€38.00n/a14
Jun ’25€49.63
€52.93
+6.6%
13.4%€61.00€38.00n/a14
May ’25€46.88
€53.21
+13.5%
13.3%€61.00€38.00n/a14
Apr ’25€50.70
€53.14
+4.8%
13.4%€61.00€38.00n/a14
Mar ’25€50.22
€53.29
+6.1%
13.3%€61.00€38.00n/a14
Feb ’25€48.31
€52.80
+9.3%
13.2%€61.00€38.00n/a15
Jan ’25€52.64
€53.73
+2.1%
13.6%€66.00€38.00€56.1215
Dec ’24€50.82
€53.73
+5.7%
13.6%€66.00€38.00€57.6015
Nov ’24€47.94
€53.93
+12.5%
13.4%€66.00€38.00€58.1215
Oct ’24€51.70
€54.13
+4.7%
13.7%€66.00€38.00€58.4415
Sep ’24€49.11
€52.35
+6.6%
14.5%€66.00€38.00€55.4617
Aug ’24€48.36
€49.24
+1.8%
15.6%€66.00€38.00€54.8617
Jul ’24€47.50
€48.25
+1.6%
15.5%€66.00€38.00€54.8218
Jun ’24€36.29
€46.18
+27.3%
14.7%€65.00€34.00€49.6319
May ’24€39.76
€45.34
+14.0%
15.5%€65.00€34.00€46.8819
Apr ’24€38.09
€44.29
+16.3%
17.4%€64.00€33.00€50.7019
Mar ’24€41.22
€42.79
+3.8%
15.7%€60.00€33.00€50.2219
Feb ’24€42.70
€42.37
-0.8%
14.6%€56.00€33.00€48.3119
Jan ’24€36.76
€41.53
+13.0%
15.0%€56.00€31.00€52.6419
Analyst Price Target
Consensus Narrative from 10 Analysts
€61.32
Fair Value
8.3% undervalued intrinsic discount
10
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/12 14:48
End of Day Share Price 2025/01/10 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Covestro AG is covered by 37 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullAlembic Global Advisors
Martin SchneeAlphaValue
Heiko FeberBankhaus Lampe KG