Is Viking Holdings Ltd (VIK) overvalued?
On Equity Rank's model estimate, VIK trades 47% above its fair value. Viking Holdings Ltd (VIK) last closed at $87.48; the multi-method model fair value is $59.62.
| Price | Model fair value | Price vs model |
|---|---|---|
| $87.48 | $59.62 | 47% above |
What the answer rests on
- 1 of 8 valuation methods put VIK's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, VIK's free cash flow would need to grow about 16.3% a year for ten years (a reverse discounted cash flow).
- VIK trades at 28.5 times its last year's earnings, against a median of 19.3 for 72 profitable Consumer Discretionary companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 5% above to 48% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind VIK's fair value · What prices assume · Other companies