Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 8.25%, higher than industry average of 6.56%.

Growth Trajectory

Profitability

In the growth phase company makes 7.09% profit on every dollar of sales, lower than industry average of 10.25%.

Profitability Trajectory

Risk Profile

Investors expect at least 9.60% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
16.67B EUR
Equity Value
16.52B EUR
FCF Yield
147.56%
Average ROIC
20.55%
Cost of Capital
8.53%
P/E Ratio
6.05x
Financial MetricMost Recent 12 months (EUR)Previous Year (EUR)
Revenues18.53B EUR17.30B EUR
Operating Income or EBIT1.28B EUR952M EUR
Interest Expense194M EUR194M EUR
Book Value Of Equity3.11B EUR3.53B EUR
Book Value Of Debt3.36B EUR3.27B EUR
Cash and Marketable Securities3.22B EUR3.94B EUR
Number of Shares Outstanding1B--
Minority interests13M EUR0 EUR
Current Stock Price5.43 EUR--
Effective Tax Rate30.00%--
Marginal Tax Rate22.00%--

Performance vs Industry

Revenue Growth
+0.59%
7.14%Company
vs
6.55%Industry
At Industry Level
Operating Margin
-3.33%
6.91%Company
vs
10.24%Industry
Below Industry
Vestas Wind Systems A/S performs in line with industry averages, showing balanced competitive positioning within its sector.

Terminal Value Analysis

Growth Rate
2.43%
Cost of Capital
6.66%
Return on Capital
6.66%
Reinvestment Rate
36.48%
Terminal value represents 79% of total enterprise value, based on 2.43% perpetual growth and 6.66% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 13.16B EUR Add
Present Value (Cash Flow Over Next 10 Years) 3.51B EUR Add
Value of Operating Assets 16.67B EUR Sub-total
Debt 3.35B EUR Subtract
Minority Interests 13.00M EUR Subtract
Cash 3.21B EUR Add
Value of Equity 16.52B EUR Sub-total
Number of Shares 1.00B shares Divisor
Estimated Value per Share (Fair Value) 16.51 EUR Total
Current Market Price 5.42 EUR Reference

Financial Projections

Total FCF Present Value
3.51B EUR
Avg Revenue Growth
5.72%
Avg Operating Margin
7.12%
Avg ROIC
20.55%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue20.29B EUR21.96B EUR23.77B EUR25.73B EUR27.86B EUR29.83B EUR31.60B EUR33.10B EUR34.29B EUR35.12B EUR35.98B EUR
Growth Rate 9.51% 8.24% 8.24% 8.24% 8.24% 7.08% 5.91% 4.75% 3.59% 2.42% 2.43%
PROFITABILITY
Operating Income1.40B EUR1.54B EUR1.68B EUR1.83B EUR2.00B EUR2.14B EUR2.27B EUR2.38B EUR2.46B EUR2.52B EUR2.59B EUR
Operating Margin 6.91% 7.02% 7.08% 7.14% 7.20% 7.20% 7.20% 7.20% 7.20% 7.20% 7.20%
EBIT (1-tax)981.97M EUR1.08B EUR1.17B EUR1.28B EUR1.40B EUR1.53B EUR1.66B EUR1.78B EUR1.88B EUR1.97B EUR2.02B EUR
CASH FLOW
Reinvestment864.68M EUR935.99M EUR1.01B EUR1.09B EUR1.01B EUR897.32M EUR763.67M EUR604.35M EUR423.38M EUR433.67M EUR737.49M EUR
Free Cash Flow117.28M EUR144.76M EUR166.33M EUR190.48M EUR384.95M EUR641.20M EUR902.34M EUR1.17B EUR1.46B EUR1.53B EUR1.28B EUR
Terminal Value--------------------30.34B EUR
Present Value107.01M EUR120.51M EUR126.34M EUR132.01M EUR243.41M EUR371.93M EUR482.74M EUR584.94M EUR677.05M EUR667.75M EUR—
EFFICIENCY
ROIC 30.25% 26.29% 23.37% 21.24% 19.62% 18.81% 18.36% 18.12% 18.07% 18.16% 6.66%
Cost of Capital 9.60% 9.60% 9.60% 9.60% 9.60% 9.01% 8.42% 7.83% 7.24% 6.66% 6.66%
Sales/Capital 1.93x 1.93x 1.93x 1.93x 1.93x 1.96x 1.96x 1.96x 1.96x 1.96x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (€B)
Reinvestment (€B)