HMS Networks AB (HMS.XSTO) DCF Valuation
Every assumption below is yours to change. The defaults are derived from this company's own filing history, not from a house view.
Conservative
kr 228.69
59% overvaluedvs kr 558.00
Base
kr 407.07
27% overvaluedvs kr 558.00
Optimistic
kr 660.40
18% undervaluedvs kr 558.00
Where today's price sits
Today's price falls inside the modelled range.
Verdict
Today's price sits inside the range but 27% above the base case. Upside from here requires beating your own base assumptions.
Base free cash flow
kr 870M
Trailing twelve months
Historical FCF CAGR
+13.1%
Across 6 reported periods
Market implies
13.6%
Growth needed at 8% WACC
Terminal value share
65%
Of the base case valuation
Growth needed to justify today's price
At a 8.0% discount rate, today's price already assumes 13.6% annual free cash flow growth for ten years. Your base case assumes 13.1%, so the market is paying for growth you are not forecasting.
Curve holds terminal growth at 2.5%, years 6 to 10 at half the first-stage rate, and applies no safety margin.
Free cash flow history
The most recent period is the base every projection starts from. Compounded, that history is +13.1% a year.
HMS Networks AB (HMS.XSTO) DCF: intrinsic value and margin of safety
Intrinsiqq's two-stage DCF values HMS Networks AB (HMS.XSTO) at about SEK 541.72 per share, or SEK 406.29 with a 25% margin of safety. At SEK 558.00 the stock looks overvalued. Every assumption is adjustable below; this is analysis, not investment advice.
Frequently asked
What is HMS Networks AB's (HMS.XSTO) fair value?+
Intrinsiqq's two-stage discounted cash flow (DCF) model estimates an intrinsic value of about SEK 541.72 per share for HMS.XSTO. It projects recent free cash flow forward at a growth rate that fades toward a long-run rate, then discounts those cash flows back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around SEK 406.29. The output moves with the growth and discount-rate inputs, so it is best read as a range, not a single number. You can change every assumption with the sliders on this tab.
Is HMS Networks AB overvalued based on a DCF?+
At SEK 558.00, HMS.XSTO trades above the base-case intrinsic value of about SEK 541.72, a 2.9% premium over that estimate, so on this model it looks overvalued. A DCF is only one lens: a premium can be justified if the business grows faster or is higher quality than the base case assumes, which is exactly what the sliders let you test.
What growth is priced into HMS Networks AB?+
The base case grows HMS.XSTO's free cash flow at about 13.1% a year before fading, against roughly 13.1% historical free-cash-flow growth. If the price implies growth well above what the company has actually delivered, the market is paying for optimism; if below, expectations are modest. Adjust the growth assumption on this tab to see what the current price is really betting on.
What is a good margin of safety for HMS Networks AB?+
A margin of safety is the discount to intrinsic value you demand before buying, to protect against being wrong on the inputs. Intrinsiqq applies 25% by default, which turns HMS.XSTO's SEK 541.72 intrinsic estimate into a SEK 406.29 entry. Wider margins suit less predictable businesses; you can set your own on this tab. This is analysis from company filings, not investment advice.
Related stocks: Communication Equipment
Spot a number that looks wrong?
Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.