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 9.44% 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
16.84B EUR
Equity Value
16.69B EUR
FCF Yield
48.64%
Average ROIC
20.54%
Cost of Capital
8.43%
P/E Ratio
18.36x
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 Price16.46 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) 13.30B EUR Add
Present Value (Cash Flow Over Next 10 Years) 3.54B EUR Add
Value of Operating Assets 16.84B EUR Sub-total
Debt 3.35B EUR Subtract
Minority Interests 13.00M EUR Subtract
Cash 3.21B EUR Add
Value of Equity 16.69B EUR Sub-total
Number of Shares 1.00B shares Divisor
Estimated Value per Share (Fair Value) 16.68 EUR Total
Current Market Price 16.46 EUR Reference

Financial Projections

Total FCF Present Value
3.54B EUR
Avg Revenue Growth
5.72%
Avg Operating Margin
7.12%
Avg ROIC
20.54%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue20.29B EUR21.96B EUR23.78B EUR25.74B EUR27.86B EUR29.84B EUR31.61B EUR33.11B EUR34.30B EUR35.14B EUR35.99B EUR
Growth Rate 9.52% 8.25% 8.25% 8.25% 8.25% 7.08% 5.92% 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 EUR2.47B EUR2.53B 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)982.06M EUR1.08B EUR1.17B EUR1.28B EUR1.40B EUR1.53B EUR1.66B EUR1.78B EUR1.88B EUR1.97B EUR2.02B EUR
CASH FLOW
Reinvestment865.29M EUR936.69M EUR1.01B EUR1.09B EUR1.02B EUR898.05M EUR764.25M EUR604.73M EUR423.54M EUR433.83M EUR737.77M EUR
Free Cash Flow116.77M EUR144.21M EUR165.75M EUR189.86M EUR384.48M EUR640.94M EUR902.32M EUR1.17B EUR1.46B EUR1.54B EUR1.28B EUR
Terminal Value--------------------30.36B EUR
Present Value106.69M EUR120.40M EUR126.44M EUR132.33M EUR244.86M EUR374.88M EUR487.18M EUR590.81M EUR684.14M EUR674.75M EUR—
EFFICIENCY
ROIC 30.25% 26.29% 23.37% 21.23% 19.62% 18.81% 18.35% 18.12% 18.06% 18.15% 6.66%
Cost of Capital 9.44% 9.44% 9.44% 9.44% 9.44% 8.88% 8.32% 7.77% 7.21% 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)