Is ACGYF Stock Undervalued?

A comprehensive valuation analysis of Subsea 7 S.A. (ACGYF) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

12364252101.2% upside potential

Based on our analysis, Subsea 7 S.A. appears to be potentially undervalued at the current price of $20.00. Our fair value estimate of $2472850440.24 suggests upside potential of approximately 12364252101.2%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing ACGYF relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
20.83
Moderate
P/B Ratio
1.39
Moderate
P/S Ratio
0.85
Low
EV/EBITDA
5.77
Low

Understanding the Metrics

  • P/E Ratio: At 20.83x earnings, ACGYF is trading near the typical market average of 15-20x.
  • P/B Ratio: A P/B of 1.39 means investors pay $1.39 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 0.85 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: This ratio of 5.77 helps compare ACGYF to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Subsea 7 S.A. stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$20.00
vs
Fair Value Estimate
$2472850440.24
Implied Return+12364252101.2%

Our DCF model suggests ACGYF may be undervalued by approximately 12364252101.2%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Subsea 7 S.A. (ACGYF) appears to be undervalued at $20.00. With a fair value estimate of $2472850440.24, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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