Drägerwerk AG & Co. KGaA

BATS-CHIXE:DRW8D Stock Report

Market Cap: €921.8m

Drägerwerk KGaA Valuation

Is DRW8D 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-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 DRW8D when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DRW8D (€43.8) is trading below our estimate of fair value (€86.49)

Significantly Below Fair Value: DRW8D is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRW8D?

Key metric: As DRW8D is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DRW8D. This is calculated by dividing DRW8D's market cap by their current earnings.
What is DRW8D's PE Ratio?
PE Ratio9.9x
Earnings€100.48m
Market Cap€921.83m

Price to Earnings Ratio vs Peers

How does DRW8D's PE Ratio compare to its peers?

The above table shows the PE ratio for DRW8D vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31x
NIOX NIOX Group
22.7x15.8%UK£249.9m
EKF EKF Diagnostics Holdings
24.4xn/aUK£116.6m
SN. Smith & Nephew
35.7x22.5%UK£8.6b
AMS Advanced Medical Solutions Group
41.2x23.0%UK£458.4m
DRW8D Drägerwerk KGaA
9.9x5.5%€921.8m

Price-To-Earnings vs Peers: DRW8D is good value based on its Price-To-Earnings Ratio (9.9x) compared to the peer average (42.1x).


Price to Earnings Ratio vs Industry

How does DRW8D's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies8PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DRW8D is good value based on its Price-To-Earnings Ratio (9.9x) compared to the European Medical Equipment industry average (31.3x).


Price to Earnings Ratio vs Fair Ratio

What is DRW8D'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.

DRW8D PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DRW8D's Price-To-Earnings 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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