Determining the Intrinsic Value of Schweizer Electronic AG (ETR:SCE)
ByAinvest
Tuesday, Aug 12, 2025 1:18 am ET1min read
PM--
The 2-stage model, which is a common valuation method, projects future cash flows and discounts them to their present value. The first stage considers the next ten years of growth, while the second stage, or terminal value, uses a conservative growth rate to estimate future cash flows beyond that period. For SCHWEIZER, this model resulted in a fair value estimate of €2.81, indicating that the company's stock is fairly priced relative to its projected future performance.
However, a closer look at the industry reveals that SCHWEIZER's peers are trading at a higher premium to their fair value estimates. The industry average premium to fair value is -24%, suggesting that SCHWEIZER's valuation is relatively conservative compared to its peers [3].
This analysis underscores the importance of understanding a company's valuation in the context of its industry. While SCHWEIZER's fair value estimate indicates that it is trading near its intrinsic value, the industry premium highlights the potential for further appreciation if the company's performance outpaces its peers.
Investors should continue to monitor SCHWEIZER's financial performance and industry trends to make informed investment decisions. The company's recent growth, as evidenced by a 10.7% increase in sales in the first half of 2025, bodes well for its future prospects [3].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TY1VN:0-morningstar-lifts-centuria-industrial-reit-s-fair-value-estimate-on-fy26-outlook/
[2] https://finance.yahoo.com/news/calculating-fair-value-philip-morris-110028230.html
[3] https://ayondo.com/en/news/DE0005156236/schweizer-electronic-ag/business-development-in-the-first-half-of-2025-2181174
Schweizer Electronic AG's fair value estimate is €2.81 based on the 2-stage free cash flow to equity model. With a share price of €2.90, the company appears to be trading close to its estimated fair value. Its peers are trading at a higher premium to fair value based on the industry average of -24%.
Schweizer Electronic AG (SCHWEIZER) has recently been evaluated using the 2-stage free cash flow to equity model, which estimates the company's fair value at €2.81 per share. Given the current share price of €2.90, the company appears to be trading close to its estimated fair value [3].The 2-stage model, which is a common valuation method, projects future cash flows and discounts them to their present value. The first stage considers the next ten years of growth, while the second stage, or terminal value, uses a conservative growth rate to estimate future cash flows beyond that period. For SCHWEIZER, this model resulted in a fair value estimate of €2.81, indicating that the company's stock is fairly priced relative to its projected future performance.
However, a closer look at the industry reveals that SCHWEIZER's peers are trading at a higher premium to their fair value estimates. The industry average premium to fair value is -24%, suggesting that SCHWEIZER's valuation is relatively conservative compared to its peers [3].
This analysis underscores the importance of understanding a company's valuation in the context of its industry. While SCHWEIZER's fair value estimate indicates that it is trading near its intrinsic value, the industry premium highlights the potential for further appreciation if the company's performance outpaces its peers.
Investors should continue to monitor SCHWEIZER's financial performance and industry trends to make informed investment decisions. The company's recent growth, as evidenced by a 10.7% increase in sales in the first half of 2025, bodes well for its future prospects [3].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TY1VN:0-morningstar-lifts-centuria-industrial-reit-s-fair-value-estimate-on-fy26-outlook/
[2] https://finance.yahoo.com/news/calculating-fair-value-philip-morris-110028230.html
[3] https://ayondo.com/en/news/DE0005156236/schweizer-electronic-ag/business-development-in-the-first-half-of-2025-2181174
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