Solvay SA

DB:SOL Stock Report

Market Cap: €3.4b

Solvay Valuation

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

Below Fair Value: SOL (€32.51) is trading below our estimate of fair value (€57.21)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SOL. This is calculated by dividing SOL's market cap by their current revenue.
What is SOL's PS Ratio?
PS Ratio0.7x
Sales€5.22b
Market Cap€3.41b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SOL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.5x
LXS LANXESS
0.3x2.8%€2.0b
BAS BASF
0.6x4.4%€37.9b
WCH Wacker Chemie
0.6x5.2%€3.5b
SDF K+S
0.5x0.4%€2.0b
SOL Solvay
0.7x0.2%€3.4b

Price-To-Sales vs Peers: SOL is expensive based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.5x).

Price to Sales Ratio vs Industry

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

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
SOL 0.7xIndustry Avg. 1.0xNo. of Companies31PS01.22.43.64.86+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SOL is good value based on its Price-To-Sales Ratio (0.7x) compared to the European Chemicals industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is SOL'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.

SOL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: SOL is expensive based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).

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 SOL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€32.51
€33.31
+2.5%
12.5%€40.00€26.00n/a16
Nov ’25€37.19
€32.63
-12.3%
13.9%€40.00€24.00n/a16
Oct ’25€35.29
€31.94
-9.5%
12.8%€40.00€24.00n/a16
Sep ’25€31.52
€31.63
+0.3%
13.3%€40.00€24.00n/a16
Aug ’25€31.64
€32.16
+1.6%
13.5%€40.00€24.00n/a16
Jul ’25€32.99
€39.28
+19.1%
73.6%€150.00€24.00n/a16
Jun ’25€34.02
€39.28
+15.5%
73.6%€150.00€24.00n/a16
May ’25€30.46
€37.25
+22.3%
79.5%€150.00€20.00n/a16
Apr ’25€24.50
€36.22
+47.8%
82.4%€150.00€20.00n/a16
Mar ’25€23.86
€36.16
+51.5%
82.7%€150.00€20.00n/a16
Feb ’25€25.06
€47.44
+89.3%
82.4%€150.00€22.00n/a16
Jan ’25€27.82
€75.20
+170.3%
69.5%€150.00€22.00n/a15
Dec ’24€107.00
€125.53
+17.3%
16.3%€155.00€84.00n/a15
Nov ’24€99.92
€126.86
+27.0%
15.5%€155.00€84.00€37.1917
Oct ’24€104.60
€127.74
+22.1%
15.2%€155.00€84.00€35.2917
Sep ’24€109.50
€125.53
+14.6%
16.2%€155.00€84.00€31.5217
Aug ’24€108.70
€125.18
+15.2%
16.3%€155.00€84.00€31.6417
Jul ’24€103.45
€124.06
+19.9%
15.9%€150.00€84.00€32.9916
Jun ’24€98.66
€122.33
+24.0%
16.0%€150.00€84.00€34.0215
May ’24€106.15
€121.53
+14.5%
16.1%€150.00€81.00€30.4615
Apr ’24€104.25
€121.53
+16.6%
16.1%€150.00€81.00€24.5015
Mar ’24€107.10
€117.73
+9.9%
15.1%€145.00€81.00€23.8615
Feb ’24€108.50
€115.80
+6.7%
16.3%€145.00€81.00€25.0615
Jan ’24€94.76
€112.00
+18.2%
16.8%€145.00€81.00€27.8216
Dec ’23€93.46
€112.00
+19.8%
16.8%€145.00€81.00€107.0016
Nov ’23€91.98
€108.88
+18.4%
16.8%€145.00€71.00€99.9217

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

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