PHG Relative Valuation
PHG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PHG is overvalued; if below, it's undervalued.
Historical Valuation
Koninklijke Philips NV (PHG) is now in the Fair zone, suggesting that its current forward PE ratio of 15.47 is considered Fairly compared with the five-year average of 16.84. The fair price of Koninklijke Philips NV (PHG) is between 25.93 to 43.86 according to relative valuation methord.
Relative Value
Fair Zone
25.93-43.86
Current Price：26.66
Fair
14.16
PE
1Y
3Y
5Y
Trailing
Forward
9.36
EV/EBITDA
Koninklijke Philips NV. (PHG) has a current EV/EBITDA of 9.36. The 5-year average EV/EBITDA is 9.79. The thresholds are as follows: Strongly Undervalued below 5.20, Undervalued between 5.20 and 7.49, Fairly Valued between 12.09 and 7.49, Overvalued between 12.09 and 14.39, and Strongly Overvalued above 14.39. The current Forward EV/EBITDA of 9.36 falls within the Historic Trend Line -Fairly Valued range.
13.09
EV/EBIT
Koninklijke Philips NV. (PHG) has a current EV/EBIT of 13.09. The 5-year average EV/EBIT is 14.59. The thresholds are as follows: Strongly Undervalued below 6.60, Undervalued between 6.60 and 10.59, Fairly Valued between 18.58 and 10.59, Overvalued between 18.58 and 22.57, and Strongly Overvalued above 22.57. The current Forward EV/EBIT of 13.09 falls within the Historic Trend Line -Fairly Valued range.
1.31
PS
Koninklijke Philips NV. (PHG) has a current PS of 1.31. The 5-year average PS is 1.28. The thresholds are as follows: Strongly Undervalued below 0.31, Undervalued between 0.31 and 0.79, Fairly Valued between 1.77 and 0.79, Overvalued between 1.77 and 2.25, and Strongly Overvalued above 2.25. The current Forward PS of 1.31 falls within the Historic Trend Line -Fairly Valued range.
10.65
P/OCF
Koninklijke Philips NV. (PHG) has a current P/OCF of 10.65. The 5-year average P/OCF is 12.23. The thresholds are as follows: Strongly Undervalued below 5.87, Undervalued between 5.87 and 9.05, Fairly Valued between 15.41 and 9.05, Overvalued between 15.41 and 18.59, and Strongly Overvalued above 18.59. The current Forward P/OCF of 10.65 falls within the Historic Trend Line -Fairly Valued range.
15.13
P/FCF
Koninklijke Philips NV. (PHG) has a current P/FCF of 15.13. The 5-year average P/FCF is 18.66. The thresholds are as follows: Strongly Undervalued below -8.42, Undervalued between -8.42 and 5.12, Fairly Valued between 32.20 and 5.12, Overvalued between 32.20 and 45.75, and Strongly Overvalued above 45.75. The current Forward P/FCF of 15.13 falls within the Historic Trend Line -Fairly Valued range.
Koninklijke Philips NV (PHG) has a current Price-to-Book (P/B) ratio of 2.06. Compared to its 3-year average P/B ratio of 1.65 , the current P/B ratio is approximately 25.20% higher. Relative to its 5-year average P/B ratio of 1.91, the current P/B ratio is about 8.21% higher. Koninklijke Philips NV (PHG) has a Forward Free Cash Flow (FCF) yield of approximately 4.22%. Compared to its 3-year average FCF yield of 2.36%, the current FCF yield is approximately 78.30% lower. Relative to its 5-year average FCF yield of 3.99% , the current FCF yield is about 5.63% lower.
1.99
P/B
Median3y
1.65
Median5y
1.91
4.22
FCF Yield
Median3y
2.36
Median5y
3.99
Competitors Valuation Multiple
The average P/S ratio for PHG's competitors is 1.31, providing a benchmark for relative valuation. Koninklijke Philips NV Corp (PHG) exhibits a P/S ratio of 1.31, which is 0.00% above the industry average. Given its robust revenue growth of 4.56%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PHG increased by 5.29% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 4.16 to 4.37.
The secondary factor is the Revenue Growth, contributed 4.56%to the performance.
Overall, the performance of PHG in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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