Vestas Wind Systems Seen 23.4% Undervalued on DCF as Shares Gain 51.9% in 12 Months
Updated
Updated · Yahoo Finance · Aug 23
Vestas Wind Systems Seen 23.4% Undervalued on DCF as Shares Gain 51.9% in 12 Months
1 articles · Updated · Yahoo Finance · Aug 23
Summary
DKK272 per share is the intrinsic value implied by the DCF model, about 23.4% above Vestas Wind Systems' current share price.
€973 million in latest 12-month free cash flow underpins that estimate, with the model assuming continued growth from turbine projects and service contracts.
A profit guidance upgrade, a €400 million share buyback and new turbine orders have already lifted sentiment, suggesting the market has only partly priced in stronger cash generation.
Execution risk on large projects and the capital needed for expansion still temper the case, leaving Vestas with a mixed valuation picture despite a 51.9% one-year stock return.