Latest news with #Symrise
Yahoo
7 days ago
- Business
- Yahoo
Estimating The Intrinsic Value Of Symrise AG (ETR:SY1)
Symrise's estimated fair value is €111 based on 2 Stage Free Cash Flow to Equity Symrise's €105 share price indicates it is trading at similar levels as its fair value estimate The €115 analyst price target for SY1 is 4.0% more than our estimate of fair value Does the June share price for Symrise AG (ETR:SY1) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Believe it or not, it's not too difficult to follow, as you'll see from our example! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €546.9m €577.2m €625.7m €700.5m €710.0m €718.9m €727.9m €737.1m €746.4m €755.8m Growth Rate Estimate Source Analyst x6 Analyst x7 Analyst x6 Analyst x2 Analyst x1 Est @ 1.25% Est @ 1.26% Est @ 1.26% Est @ 1.26% Est @ 1.26% Present Value (€, Millions) Discounted @ 5.5% €518 €518 €532 €565 €542 €520 €499 €479 €459 €441 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €5.1b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (1.3%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 5.5%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €756m× (1 + 1.3%) ÷ (5.5%– 1.3%) = €18b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €18b÷ ( 1 + 5.5%)10= €10b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €16b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of €105, the company appears about fair value at a 5.4% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Symrise as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.5%, which is based on a levered beta of 0.987. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Symrise Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Chemicals market. Opportunity Annual earnings are forecast to grow for the next 3 years. Current share price is below our estimate of fair value. Threat Annual earnings are forecast to grow slower than the German market. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Symrise, there are three further elements you should further examine: Risks: To that end, you should be aware of the 1 warning sign we've spotted with Symrise . Future Earnings: How does SY1's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every German stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Newsweek
23-05-2025
- Business
- Newsweek
From Crisis to Catalyst: How Chemicals Are Powering Tomorrow
For the chemicals industry—so deeply embedded in the machinery of global trade—2025 is a reckoning. In conversations with executives across the sector, one theme surfaced again and again: uncertainty. But beneath the noise, a deeper shift is underway. The industry is no longer content to react; it is rethinking where it operates, how it builds resilience and what role it will now play in a fractured, fast-changing world. And nowhere is this upheaval more apparent than in the turning tides of geopolitics. With supply chain disruptions from the Red Sea to the Panama Canal, conflict from Ukraine to the Middle East and now sweeping tariffs under a second Trump administration in the U.S., the industry is recalibrating—adapting to a world tilting away from global integration toward fragmentation and self-protection. The old logic—low-cost global trade, predictable policy, centralized production—is breaking down. In its place, a new playbook is emerging: one rooted in resilience, reinvention and a sharper sense of long-term purpose. But pressure doesn't just disrupt—it accelerates change. In chemistry, as in life, higher pressures lead to faster reactions. This report captures that pivot, in the voices of those confronting it firsthand. Roberto Ramos, CEO, Braskem. Credit: Coutesy of Braskem. Roberto Ramos, CEO, Braskem. Credit: Coutesy of Braskem. The most significant change is the demise of the European producers, particularly after the Russian invasion of Ukraine. This affected the availability of gas for power generation, causing energy prices to triple. Companies in Europe simply couldn't compete with the rising energy costs. Roberto Ramos, CEO, Braskem. Jean-Yves Parisot, CEO, Symrise. Credit: Courtesy of Symrise. Jean-Yves Parisot, CEO, Symrise. Credit: Courtesy of Symrise. Our biggest challenge is balancing customer needs with innovation. Despite economic pressures and rising tariffs, we're committed to investing in innovation, particularly in health, well-being and beauty. Sourcing natural raw materials is also a challenge, especially with climate change impacting agriculture. Jean-Yves Parisot, CEO, Symrise. This report has been paid for by a third party. The views and opinions expressed are not those of Newsweek and are not an endorsement of the products, services or persons mentioned. Click here to download the full report
Fashion Network
14-05-2025
- Business
- Fashion Network
Elie Saab launches first men's perfume
The first men's perfume by luxury label Elie Saab is called simply L'Homme. Fourteen years after launching its first women's fragrance, Le Parfum, developed by Francis Kurkdjian, the Lebanese luxury label has commissioned its first men's scent to master perfumer Pierre Guéros of Symrise. Elie Saab's fashion and haute couture collections do not (yet) cater to men, with the exception of a few looks presented during a runway show in 2022, but on the fragrance front Elie Saab has now created L'Homme, a woody vetiver perfume full of intriguing contrasts. The refillable bottle has been designed by Sylvie de France, who had also styled the bottle of Elie Saab's Le Parfum. L'Homme is priced at €125 for the 100 ml bottle. In France, still a minor market for Elie Saab perfumes due to the predominance of French brands, L'Homme is available at the Elie Saab store on Avenue Georges V in Paris. 'The main markets for Elie Saab perfumes, which has 13 directly owned stores and is present in selective perfumery chains, are the Middle East and the UK. Italy, where we have advertised on TV, and Spain, are markets where we have also deployed a communication campaign, chiefly on digital media,' said Nathalie Helloin Kamel, managing director of the Prestige division at Italian group Give Back Beauty, Elie Saab's licensed perfume producer since 2020. Give Back Beauty was founded in 2017. It currently employs 500 people and is present in 130 countries, and has expanded its license portfolio in recent years. The group produces several product categories (fragrances, haircare and skincare), and its portfolio includes perfumes for Chopard and beauty products for Florence by Mills, the brand of US actor Millie Bobbie Brown. In 2024, Give Back Beauty generated a revenue of €300 million. Fragrance isn't the only category in which Elie Saab is diversifying. For the Milan Furniture Fair in April, the Lebanese label inaugurated the brand-new showroom of its home decoration line, Elie Saab Maison, inside an ancient palazzo in the heart of Milan. A new initiative that highlighted the rapid growth of Elie Saab Maison in the last five years. Elie Saab is also involved in a few real estate projects.
Fashion Network
13-05-2025
- Business
- Fashion Network
Elie Saab launches first men's perfume
The first men's perfume by luxury label Elie Saab is called simply L'Homme. Fourteen years after launching its first women's fragrance, Le Parfum, developed by Francis Kurkdjian, the Lebanese luxury label has commissioned its first men's scent to master perfumer Pierre Guéros of Symrise. Elie Saab's fashion and haute couture collections do not (yet) cater to men, with the exception of a few looks presented during a runway show in 2022, but on the fragrance front Elie Saab has now created L'Homme, a woody vetiver perfume full of intriguing contrasts. The refillable bottle has been designed by Sylvie de France, who had also styled the bottle of Elie Saab's Le Parfum. L'Homme is priced at €125 for the 100 ml bottle. In France, still a minor market for Elie Saab perfumes due to the predominance of French brands, L'Homme is available at the Elie Saab store on Avenue Georges V in Paris. 'The main markets for Elie Saab perfumes, which has 13 directly owned stores and is present in selective perfumery chains, are the Middle East and the UK. Italy, where we have advertised on TV, and Spain, are markets where we have also deployed a communication campaign, chiefly on digital media,' said Nathalie Helloin Kamel, managing director of the Prestige division at Italian group Give Back Beauty, Elie Saab's licensed perfume producer since 2020. Give Back Beauty was founded in 2017. It currently employs 500 people and is present in 130 countries, and has expanded its license portfolio in recent years. The group produces several product categories (fragrances, haircare and skincare), and its portfolio includes perfumes for Chopard and beauty products for Florence by Mills, the brand of US actor Millie Bobbie Brown. In 2024, Give Back Beauty generated a revenue of €300 million. Fragrance isn't the only category in which Elie Saab is diversifying. For the Milan Furniture Fair in April, the Lebanese label inaugurated the brand-new showroom of its home decoration line, Elie Saab Maison, inside an ancient palazzo in the heart of Milan. A new initiative that highlighted the rapid growth of Elie Saab Maison in the last five years. Elie Saab is also involved in a few real estate projects.
Fashion Network
13-05-2025
- Business
- Fashion Network
Elie Saab launches first men's perfume
The first men's perfume by luxury label Elie Saab is called simply L'Homme. Fourteen years after launching its first women's fragrance, Le Parfum, developed by Francis Kurkdjian, the Lebanese luxury label has commissioned its first men's scent to master perfumer Pierre Guéros of Symrise. Elie Saab's fashion and haute couture collections do not (yet) cater to men, with the exception of a few looks presented during a runway show in 2022, but on the fragrance front Elie Saab has now created L'Homme, a woody vetiver perfume full of intriguing contrasts. The refillable bottle has been designed by Sylvie de France, who had also styled the bottle of Elie Saab's Le Parfum. L'Homme is priced at €125 for the 100 ml bottle. In France, still a minor market for Elie Saab perfumes due to the predominance of French brands, L'Homme is available at the Elie Saab store on Avenue Georges V in Paris. 'The main markets for Elie Saab perfumes, which has 13 directly owned stores and is present in selective perfumery chains, are the Middle East and the UK. Italy, where we have advertised on TV, and Spain, are markets where we have also deployed a communication campaign, chiefly on digital media,' said Nathalie Helloin Kamel, managing director of the Prestige division at Italian group Give Back Beauty, Elie Saab's licensed perfume producer since 2020. Give Back Beauty was founded in 2017. It currently employs 500 people and is present in 130 countries, and has expanded its license portfolio in recent years. The group produces several product categories (fragrances, haircare and skincare), and its portfolio includes perfumes for Chopard and beauty products for Florence by Mills, the brand of US actor Millie Bobbie Brown. In 2024, Give Back Beauty generated a revenue of €300 million. Fragrance isn't the only category in which Elie Saab is diversifying. For the Milan Furniture Fair in April, the Lebanese label inaugurated the brand-new showroom of its home decoration line, Elie Saab Maison, inside an ancient palazzo in the heart of Milan. A new initiative that highlighted the rapid growth of Elie Saab Maison in the last five years. Elie Saab is also involved in a few real estate projects.
