Market Pulse45Neutral

Evotec SE(EVO) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$2.62

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$2.62
Price
$4.92
Intrinsic Value
Undervalued by 88%MOS: $3.94

Fundamental Score

53/100
Neutral

Weighted across 6 signals

Narrative Score

50/100
Weak

No change vs previous

Trend Score

0/100
Unavailable

Trend data unavailable

The intrinsic value of Evotec SE (EVO) is estimated at $4.92 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $2.62, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.37% long-term growth rate and a 10.00% discount rate (calculated: 7.95%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Evotec SE (EVO) is estimated at $4.92 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $2.62, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.37% long-term growth rate and a 10.00% discount rate (calculated: 7.95%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$4.92
▲ 87.79% upside
20% margin of safety: $3.94
Years: 10Growth Rate: 7.37%
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Capital Efficiency

Average Quarterly ROIC
-4.56%
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

53/100
NeutralWeighted across 6 signals
DCF Discount
87.8% discount to price
100
FCF Yield
10.0% trailing FCF yield
100
ROIC vs WACC
ROIC -4.6% vs WACC 9.0% (-0.5x)
0
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-6.2% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, FCF CAGR (5Y).

Narrative Details

50/100
Weak
Vs 6-Month Baseline:Low (11th pct)Weighted across 2 recent drivers
Trend: StableConfidence: 43%Updated: 2h ago
Sources: 8 (8 News)
Drivers(last 30 days)
7 news sentiment+0.0
Regulatory scrutiny+0.0

Trend Details

0/100
NeutralRules-based daily model
Trend score unavailable for this ticker right now.

Investment Coach

Updating... 12d ago
BUYConfidence: 52%
Thesis
Evotec SE is undervalued with an estimated fair value over 100% above its current price, supported by a healthy free cash flow yield of 10% and a strong net cash position. Despite trailing returns relative to its cost of capital, the company's valuation discount and buyback activity present a compelling investment opportunity.
Key Risk
The key risk is the company's negative spread between ROIC and WACC, indicating returns are not covering the cost of capital, which may pressure future valuation and performance.
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: 7.37%5 Year CAGR (Adjusted): -12.67%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$93$69$172$288$442$276$164$85$210$32$89$31$2$14$25$21$4-$22-$43-$31-$8

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 globally as a dedicated partner, specializing in the discovery and advancement of new pharmaceutical products for the biotechnology and pharmaceutical sectors. Its comprehensive research and development initiatives encompass a broad spectrum of medical areas, such as metabolic disorders (including diabetes and its complications), fibrosis, infectious conditions, central nervous system (CNS) diseases, oncology, pain management, inflammatory ailments, immunological dysfunctions, rare diseases, respiratory conditions, and women's health. The company maintains strategic alliances and collaborations with numerous prominent organizations, including 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. Established in 1993, the company was formerly known as Evotec AG, changing its name to Evotec SE in April 2019. Its corporate headquarters are located in Hamburg, Germany.