Where Does De Nora Stand After a 30% Share Price Drop in 2025?

If you have been tracking Industrie De Nora, you might find yourself wondering whether now is the right moment to buy in, hold steady, or trim your position. After all, seeing a stock fall nearly 30% over the last year and a staggering 59.2% over three years can make even the most patient investor reevaluate. The share price, recently closing at 6.445, reflects a year marred by shifting market sentiment and changing risk perceptions, with the year-to-date return already down 17.1%. Shorter-term performance has been volatile too, with losses of 1.9% in the past week and 4.0% over the last month.

Some of these moves reflect broader market developments impacting the industrial sector and companies with exposure to energy transition technologies. Sometimes, share prices move not just because of company-specific news, but because of changing investor appetite for growth versus stability. For Industrie De Nora, these trends seem to be weighing heavily, pushing the stock to what some investors might view as bargain territory.

But just how cheap is the stock, really? If we run the numbers through six standard valuation checks, De Nora clocks a score of 2, meaning it comes up as undervalued in only two categories. Those results might help frame whether the current price offers hidden value or not.

It is time to dig deeper into the valuation approaches investors use. In addition, we will later explore an even better way to assess Industrie De Nora's true potential.

Industrie De Nora scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Industrie De Nora Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates what a business is intrinsically worth by forecasting its future free cash flows and discounting them back to today's value. This method aims to reflect the present value of all cash a company could generate for shareholders in the future. It is especially useful for businesses with variable earnings.

For Industrie De Nora, the current reported Free Cash Flow (FCF) stands at €21.04 million. Analysts expect FCF to grow rapidly in the short term, projecting €59.4 million by 2029. After analyst coverage drops off, further years are extrapolated. These estimates become increasingly uncertain the further out they go. The ten-year forecast reveals some volatility, peaking at €127.1 million in 2028 before settling lower in subsequent years.

Using this forecast, the DCF model calculates an estimated intrinsic value of €1.44 per share. With the current share price at €6.445, this suggests the stock trades at a substantial premium. In fact, the implied discount is -347.3 percent, meaning the stock appears heavily overvalued versus its projected cash flows.

Result: OVERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Industrie De Nora.

Our Discounted Cash Flow (DCF) analysis suggests Industrie De Nora may be overvalued by 347.3%. Find undervalued stocks or create your own screener to find better value opportunities.

Approach 2: Industrie De Nora Price vs Earnings

For profitable companies like Industrie De Nora, the price-to-earnings (PE) ratio is a widely used and intuitive valuation measure. It allows investors to quickly gauge how much the market is willing to pay for the company’s current earnings, making it especially useful for businesses consistently generating profits.

What constitutes a “normal” or “fair” PE often depends not only on industry conventions but also on market expectations around growth and risk. Companies expected to grow rapidly or viewed as having stable, low-risk profiles often carry higher PE ratios, while riskier or slower-growing firms are assigned lower ones.

Industrie De Nora currently trades at a PE ratio of 16.27x. This sits well below the machinery industry average of 24.45x and the peer group average of 21.58x.

However, comparing PE ratios in isolation can be misleading. Simply Wall St’s Fair Ratio provides additional perspective by using a proprietary calculation that takes account of the company’s earnings growth, risk profile, profit margins, industry, and market capitalization. By integrating these variables, the Fair Ratio offers a more tailored benchmark than a simple peer or sector comparison. For De Nora, the Fair Ratio stands at 15.04x.

Comparing the current PE ratio (16.27x) to the Fair Ratio (15.04x) suggests the stock is valued about right by the market, with only a fractional premium that is well within reasonable bounds.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Industrie De Nora Narrative

Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your own story about a company; it lets you pair your beliefs and research with real numbers such as fair value, estimates of future revenue, earnings, and margins. Narratives connect the company’s unique journey and prospects to a financial forecast, giving you a tailored fair value range that is anchored by your perspective rather than generic benchmarks.

Used by millions of investors on Simply Wall St’s Community page, Narratives are easy to create and update. They help you decide when to buy or sell by directly comparing your Narrative-based Fair Value with the current market price, so you know at a glance if the stock looks attractive for you. Plus, since Narratives automatically refresh when fresh news or earnings are released, your view always reflects the latest information.

For Industrie De Nora, one investor’s Narrative might see a fair value as high as €11 per share based on rapid expansion, while another’s might be as low as €5 if they believe headwinds will persist. By building and following your own Narrative, you put the story behind the numbers and upgrade the way you make investment decisions.

Do you think there's more to the story for Industrie De Nora? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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