Market Pulse50Neutral

Evotec SEOpportunity Rank #172(EVO) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$2.38

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$2.38
Price
$4.68
Intrinsic Value
Undervalued by 97%MOS: $3.74

Fundamental Score

44/100
Bearish

Weighted across 6 signals

Narrative Score

53/100
Weak

No change vs previous

The intrinsic value of Evotec SE (EVO) is estimated at $4.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $2.38, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.54% long-term growth rate and a 10.00% discount rate (calculated: 6.87%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Evotec SE (EVO) is estimated at $4.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $2.38, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.54% long-term growth rate and a 10.00% discount rate (calculated: 6.87%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$4.68
▲ 96.64% upside
20% margin of safety: $3.74
Years: 10Growth Rate: 7.54%
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Capital Efficiency

Average Quarterly ROIC
-2.18%
Cost of Capital (estimated)9%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

44/100
BearishWeighted across 6 signals
DCF Discount
96.6% discount to price
100
FCF Yield
12.7% trailing FCF yield
100
ROIC vs WACC
ROIC -2.2% vs WACC 9.0% (-0.2x)
0
Net Debt / FCF
2.7x net debt to FCF
10
Buybacks
Share count growing
30
FCF CAGR (5Y)
4.5% 5Y FCF CAGR
25
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

53/100
Weak
Vs 6-Month Baseline:High (92nd pct)Weighted across 3 recent drivers
Trend: StableConfidence: 44%Updated: 1h ago
Sources: 7 (7 News)
Drivers(last 30 days)
5 news sentiment+0.3
Upgrade headlines+0.0
Legal risk+0.0

Investment Coach

Updated 10h ago
WATCHConfidence: 45%
Thesis
Evotec SE is currently undervalued with an estimated fair value 117.6% above its current price, supported by a healthy free cash flow yield of 12.7%. However, the company's fundamentals are weak, with returns trailing the estimated cost of capital and a negative ROIC spread.
Key Risk
The key risk is the sustained negative spread between ROIC and WACC, indicating the company is not generating sufficient returns on invested capital.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 7.53%5 Year CAGR (Adjusted): -4.77%

Free Cash Flow (in millions)

TTM20242023202220212020201920182017201620152014201320122011201020092008200720062005
$107$174$293$449$280$167$86$213$33$90$31$2$14$26$21$4-$23-$44-$32-$8$2

How Intrinziq Estimates Fair Value

Intrinziq estimates Evotec SE's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Evotec SEHealthcare

Evotec SE operates as drug discovery and development partner for the pharmaceutical and biotechnology industry worldwide. The company is developing pharmaceutical products in various therapeutic areas, such as diabetes and complications of diabetes, fibrosis, infectious diseases, CNS diseases, oncology, pain and inflammation, immunology, rare diseases, respiratory diseases, and women's health. It has collaboration agreements with Bayer AG; Lilly; Chinook Therapeutics; Novo Nordisk A/S; Galapagos; Pfizer Inc.; CONBA Pharmaceutical Co., Ltd.; Bristol Myers Squibb Company; Zhejiang JingXin Pharmaceutical Co., Ltd; Kazia Therapeutics; Apeiron Biologics; and Takeda Pharmaceuticals. The company was formerly known as Evotec AG and changed its name to Evotec SE in April 2019. Evotec SE was incorporated in 1993 and is headquartered in Hamburg, Germany.