Vestas Wind Systems A/S

CPSE:VWS Stock Report

Market Cap: kr.180.4b

Vestas Wind Systems Valuation

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

Below Fair Value: VWS (DKK179.2) is trading below our estimate of fair value (DKK294.35)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

VWS 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/Revenue1.7x
Enterprise Value/EBITDA67.1x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VWS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average10.9x
NKT NKT
1.6x7.5%kr.30.5b
ROCK B Rockwool
1.8x3.5%kr.49.0b
GREENH Green Hydrogen Systems
36.6x100.3%kr.1.5b
600406 NARI Technology
3.6x11.0%CN¥189.1b
VWS Vestas Wind Systems
1.6x11.8%kr.180.4b

Price-To-Sales vs Peers: VWS is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (10.9x).


Price to Earnings Ratio vs Industry

How does VWS's PE Ratio compare vs other companies in the European Electrical Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.6%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.6%
n/an/an/a
No more companies

Price-To-Sales vs Industry: VWS is expensive based on its Price-To-Sales Ratio (1.6x) compared to the European Electrical industry average (1.1x).


Price to Sales Ratio vs Fair Ratio

What is VWS'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.

VWS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: VWS is expensive based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).


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 VWS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentkr.179.20
kr.222.05
+23.9%
21.1%kr.314.95kr.101.02n/a26
Apr ’25kr.193.00
kr.222.10
+15.1%
21.1%kr.315.09kr.101.00n/a26
Mar ’25kr.197.52
kr.217.65
+10.2%
22.6%kr.314.93kr.100.98n/a25
Feb ’25kr.195.12
kr.211.02
+8.2%
24.3%kr.299.81kr.100.93n/a24
Jan ’25kr.214.30
kr.205.17
-4.3%
24.2%kr.300.16kr.98.99n/a24
Dec ’24kr.188.56
kr.204.23
+8.3%
24.3%kr.299.82kr.98.94n/a24
Nov ’24kr.152.68
kr.202.02
+32.3%
25.1%kr.300.18kr.99.02n/a23
Oct ’24kr.151.56
kr.205.20
+35.4%
24.6%kr.300.48kr.99.02n/a24
Sep ’24kr.165.74
kr.218.54
+31.9%
24.6%kr.356.18kr.140.14n/a24
Aug ’24kr.180.66
kr.215.04
+19.0%
23.0%kr.340.11kr.126.04n/a23
Jul ’24kr.181.46
kr.217.50
+19.9%
21.7%kr.339.87kr.139.95n/a23
Jun ’24kr.202.05
kr.217.07
+7.4%
22.6%kr.339.85kr.139.94n/a23
May ’24kr.186.86
kr.216.53
+15.9%
23.3%kr.340.14kr.140.20kr.186.8523
Apr ’24kr.199.00
kr.216.55
+8.8%
23.3%kr.339.92kr.140.11kr.193.0023
Mar ’24kr.208.60
kr.209.17
+0.3%
25.7%kr.359.72kr.125.09kr.197.5221
Feb ’24kr.197.82
kr.205.81
+4.0%
27.3%kr.359.80kr.124.98kr.195.1222
Jan ’24kr.202.10
kr.194.04
-4.0%
29.1%kr.360.08kr.125.04kr.214.3021
Dec ’23kr.181.22
kr.192.77
+6.4%
29.2%kr.359.97kr.124.83kr.188.5621
Nov ’23kr.150.00
kr.191.15
+27.4%
28.7%kr.360.38kr.124.98kr.152.6821
Oct ’23kr.141.62
kr.200.42
+41.5%
26.8%kr.359.86kr.125.04kr.151.5621
Sep ’23kr.174.76
kr.199.48
+14.1%
25.2%kr.334.91kr.124.93kr.165.7421
Aug ’23kr.185.96
kr.195.68
+5.2%
25.9%kr.335.10kr.125.02kr.180.6620
Jul ’23kr.153.98
kr.195.84
+27.2%
27.8%kr.349.96kr.124.92kr.181.4620
Jun ’23kr.176.18
kr.202.99
+15.2%
27.5%kr.350.12kr.124.97kr.202.0522
May ’23kr.182.82
kr.206.46
+12.9%
26.3%kr.350.02kr.124.96kr.186.8622

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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