Covestro AG

DB:1COV Stock Report

Market Cap: €10.9b

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.

Below Fair Value: 1COV (€57.32) is trading below our estimate of fair value (€130.69)

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€10.85b

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
0.5x2.2%€8.1b
2NF Syensqo
1.1x4.2%€7.5b
SY1 Symrise
3x5.5%€14.6b
WCH Wacker Chemie
0.6x5.2%€3.5b
1COV Covestro
0.8x4.3%€10.9b

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 DE Chemicals Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
2HRA H&R GmbH KGaA
0.1x3.0%US$134.61m
NSAK OTI Greentech
0.03xn/aUS$598.23k
B7Y Byotrol
0.04xn/aUS$246.97k
No more companies available in this PS range
1COV 0.8xIndustry Avg. 1.0xNo. of Companies6PS00.40.81.21.62+
3 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 (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€57.32
€60.92
+6.3%
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€38.00n/a15
Dec ’24€50.82
€53.73
+5.7%
13.6%€66.00€38.00n/a15
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
Dec ’23€37.25
€41.26
+10.8%
15.0%€56.00€31.00€50.8219
Nov ’23€34.01
€41.79
+22.9%
14.9%€57.00€31.00€47.9419

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

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