Drägerwerk KGaA Valuation

Q: What is the Fair Price of DRW3D when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

DRW3D (€42.7) is trading below our estimate of [[fair value]] (€269.78)

Is DRW3D 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 DRW3D when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRW3D (€42.7) is trading below our estimate of fair value (€269.78)

Significantly Below Fair Value: DRW3D is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRW3D?

Key metric: As DRW3D is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DRW3D. This is calculated by dividing DRW3D's market cap by their current revenue.
What is DRW3D's PS Ratio?
PS Ratio	0.3x
Sales	€3.16b
Market Cap	€771.47m

DRW3D 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/Revenue	0.3x
Enterprise Value/EBITDA	15.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does DRW3D's PS Ratio compare to its peers?

The above table shows the PS ratio for DRW3D vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	3.2x
NIOX NIOX Group	6.4x	12.1%	UK£249.9m
EKF EKF Diagnostics Holdings	2.3x	7.6%	UK£116.6m
CREO Creo Medical Group	2.1x	-4.9%	UK£64.3m
SN. Smith & Nephew	1.9x	5.0%	UK£8.6b
DRW3D Drägerwerk KGaA	0.3x	3.9%	€771.5m

Price-To-Sales vs Peers: DRW3D is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (13.1x).

Price to Sales Ratio vs Industry

How does DRW3D's PS Ratio compare vs other companies in the GB Medical Equipment Industry?

5 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	n/a	6.3%
DRW3D Drägerwerk KGaA	0.3x	3.9%	US$826.43m
SPEC INSPECS Group	0.3x	5.5%	US$65.79m
YGEN Yourgene Health	0.6x	n/a	US$20.48m

5 Companies		Estimated Growth	Market Cap
Industry Avg.	n/a	22.5%
DRW3D Drägerwerk KGaA	0.3x	84.1%	US$826.43m

No more companies

Price-To-Sales vs Industry: DRW3D is good value based on its Price-To-Sales Ratio (0.3x) compared to the UK Medical Equipment industry average (2.8x).

Price to Sales Ratio vs Fair Ratio

What is DRW3D'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.

DRW3D PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate DRW3D's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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