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DSM-Firmenich Valuation

Is DSM2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 DSM2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DSM2 (€113.95) is trading below our estimate of fair value (€644.43)

Significantly Below Fair Value: DSM2 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DSM2?

Key metric: As DSM2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DSM2. This is calculated by dividing DSM2's market cap by their current earnings.
What is DSM2's PE Ratio?
PE Ratio1.7x
EarningsUS$454.00m
Market CapUS$0

Price to Earnings Ratio vs Peers

How does DSM2's PE Ratio compare to its peers?

The above table shows the PE ratio for DSM2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.4x
UZU Uzin Utz
10.2x2.1%€245.2m
ACT AlzChem Group
11.8x12.8%€590.2m
NTG Nabaltec
8.9x5.9%€125.4m
2HRA H&R GmbH KGaA
22.8x52.9%€124.7m
DSM2 DSM-Firmenich
1.7xn/a€763.7m

Price-To-Earnings vs Peers: DSM2 is good value based on its Price-To-Earnings Ratio (1.7x) compared to the peer average (25.1x).


Price to Earnings Ratio vs Industry

How does DSM2's PE Ratio compare vs other companies in the European Chemicals Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.17.0x0%
DSM2 DSM-Firmenich
1.7xn/aUS$817.00m
DSM2 1.7xIndustry Avg. 17.0xNo. of Companies12PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
Industry Avg.17.0x0%
DSM2 DSM-Firmenich
1.7xn/aUS$817.00m
No more companies

Price-To-Earnings vs Industry: DSM2 is good value based on its Price-To-Earnings Ratio (1.7x) compared to the European Chemicals industry average (11.1x)


Price to Earnings Ratio vs Fair Ratio

What is DSM2'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.

DSM2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1.7x
Fair PE Ratio16x

Price-To-Earnings vs Fair Ratio: DSM2 is good value based on its Price-To-Earnings Ratio (1.7x) compared to the estimated Fair Price-To-Earnings Ratio (16x).


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 DSM2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Dec ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Nov ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Oct ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Sep ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Aug ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Jul ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Jun ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
May ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Apr ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Mar ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Feb ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Jan ’25n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Dec ’24n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Nov ’24n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Oct ’24n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Sep ’24n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Aug ’24n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Jul ’24n/a
US$149.25
0%
11.9%US$184.00US$122.00n/a19
Jun ’24US$113.95
US$149.25
+31.0%
11.9%US$184.00US$122.00n/a19
May ’24US$117.65
US$149.04
+26.7%
11.9%US$184.00US$122.00n/a20
Apr ’24US$108.35
US$149.11
+37.6%
12.9%US$184.00US$103.40n/a20
Mar ’24US$117.70
US$150.86
+28.2%
13.0%US$184.00US$103.40n/a20
Feb ’24US$118.35
US$153.20
+29.4%
14.4%US$206.80US$103.40n/a20
Jan ’24US$115.35
US$158.56
+37.5%
14.2%US$206.80US$103.40n/a20
Dec ’23US$124.15
US$159.16
+28.2%
14.3%US$206.80US$103.40n/a20

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis
End of Day Share Price
Earnings
Annual Earnings

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

DSM-Firmenich AG is covered by 61 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mutlu GundoganABN AMRO Bank N.V.
Martin SchneeAlphaValue
Volker BosseBaader Helvea Equity Research