Schneider Electric S.E. (SBGSY) DCF Valuation
TGM's two-stage DCF values Schneider Electric S.E. (SBGSY) between $17.11 and $32.72 depending on assumptions, with a base case of $23.57. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (9.8%) reflects its beta.
What would today's price require?
$63.53 is justified only if free cash flow grows about +29.0% a year (fading to 2.5% long-run) at a 9.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 3.7%/yr | 10.8% | $17.11 |
| Base case | 6.7%/yr | 9.8% | $23.57 |
| Optimistic | 9.7%/yr | 8.8% | $32.72 |
| Analyst DCF (FMP) | independent reference — different model | $30.96 | |
Current Price
$63.53
Market-Implied Growth
+29.0%/yr
vs +5.7% 5Y actual
Model Scenario Range
$17.11 – $32.72
model output — not a price target
SBGSY DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for SBGSY (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $4.9B · 2.81B shares · net debt $15.4B
Estimated Fair Value
$27.86
-56.1% vs $63.53
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 6.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $63.53; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 7.8% | $36.37 | $38.70 | $41.46 | $44.79 | $48.90 |
| 8.8% | $30.17 | $31.74 | $33.57 | $35.70 | $38.24 |
| 9.8% | $25.49 | $26.60 | $27.86 | $29.31 | $30.99 |
| 10.8% | $21.84 | $22.65 | $23.55 | $24.58 | $25.74 |
| 11.8% | $18.91 | $19.52 | $20.19 | $20.94 | $21.77 |
About Schneider Electric S.E.
Schneider Electric S.E. delivers comprehensive digital solutions for energy management and industrial automation to a global client base. The company operates through two primary divisions: Energy Management and Industrial Automation. Its extensive product catalog features electrical distribution and protection equipment, including circuit breakers, switches, contactors, and relays, alongside advanced energy management software. It also provides solutions for power quality, monitoring, and conditioning, such as surge protectors and power factor correction devices. For building infrastructure, Schneider Electric offers systems for access control, fire detection, environmental sensors, and integrated building management, encompassing valves and variable speed drives. Within grid and utility operations, the company supplies feeder and substation automation, SCADA software, medium voltage switchgear, and transformers. Data center solutions include critical power and cooling, IT power distribution, prefabricated modules, and security monitoring. Residential and commercial offerings range from home automation and security systems to wiring devices and uninterruptible power supplies. Furthermore, Schneider Electric is a leading provider of industrial automation and control technologies, featuring human-machine interfaces, industrial software, motion control, robotics, programmable controllers, process safety systems, and solutions for solar power and energy storage. Established in 1836, Schneider Electric S.E. is headquartered in Rueil-Malmaison, France.
- Sector
- Industrials
- Industry
- Industrial - Machinery
- CEO
- Olivier Blum