Nestlé S.A.
Nestlé S.A., together with its subsidiaries, manufactures and distributes food and beverage, and nutritional science products in the United States, Brazil, Mexico, Greater China, the Philippines, India, the United Kingdom, France, Germany, Switzerland, and internationally. The company offers cereal…
Nestlé S.A., together with its subsidiaries, manufactures and distributes food and beverage, and nutritional science products in the United States, Brazil, Mexico, Greater China, the Philippines, India, the United Kingdom, France, Germany, Switzerland, and internationally. The company offers cereals, chocolate and confectionery, coffee, culinary, chilled and frozen food, dairy, drinks, food service, ice cream, nutrition and health, petcare, water, plant-based portfolio, and recipe products. It sells its products under the Nesquik Cereal, Fitness, Cheerios, Lion Cereals, Cini Minis, KitKat Cereal, Chocapic, Koko Krunch, Shreddies, Shredded Wheat Original, Corn Flakes, Trix Cereal, Aero, Baci Perugina, KitKat, Milkybar, Smarties, Cailler, Quality Street, Garoto, Nestlé Toll House, Munch, Damak, Hsu Fu Chi, Sahne Nuss, Nestlé Sustainably Sourced Cocoa, Blue Bottle Coffee, Nescafé, Nescafé Dolce Gusto, Nespresso, Starbucks Coffee At Home, DiGiorno, Garden Gourmet, Maggi, Thomy, Stouffer's, Hot Pockets, Lean Cuisine, Life Cuisine, Buitoni, Nestlé carnation, Nestlé Coffee Mate, and Nestea brands. The company also offers its products under the Roastelier by Nescafé, Plant-based and so good!, Milo, Chef, Maggi Professional, La Lechera, Minor's, Antica Gelateria Del Corso, Drumstick, Extrême, Häagen-Dazs, Maxibon, Mövenpick, Nancare, Gerber, Cerelac, Nestum, Alfaré HMO, Athéra HMO, Alfamino HMO, Bear Brand, Nido, Orgain, Nestlé Vital, Garden of Life, Pure Encapsulations, Solgar, Compleat, Impact, Peptamen, Vitaflo, Resource, Cat Chow, Dentalife, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet, Purina, Purina ONE, Purina Pro Plan, Purina Pro Plan Veterinary Diets, Acqua Panna, Nestlé Pure Life, Perrier, S.Pellegrino, Sanpellegrino, Buxton, Erikli, Levissima, Vittel, Contrex, HENNIEZ, Hépar, La Vie, Naleczowianka, and Essentia brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland. Aimmune Therapeutics, Inc. operates as a subsidiary of Nestlé S.A.Looks overvalued
Other models: CHF 46.47–61.66 (median 52.81). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price above modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 2.95% growth, 2.4% terminal growth, and 9.2% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 2.95%, discount rate 9.20%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 3.0% (sector default 5.3%, own revenue history 0.7%, analyst revenue consensus 2.9%).
5-year outlook: relative outlook of about 6.2% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 2.9% a year; the growth assumption used is 3.0%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — CHF 48.06 (-43.4%)
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EPS-based Gordon proxy
— CHF 52.81 (-37.8%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— CHF 48.06 (-43.4%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— CHF 46.47 (-45.3%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— CHF 61.66 (-27.4%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— CHF 48.00 (-43.5%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— CHF 136.72 (+61.0%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear CHF 29.90 | -184.0% |
| Base CHF 48.06 | -76.7% |
| Bull CHF 81.82 | -3.8% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At CHF 84.91 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.2%).
Compare: the market implies 13.4% a year, this model assumes 3.0%. The market expects more than this model does, which is why it reads as overvalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.2% | 8.2% | 9.2% | 10.2% | 11.2% |
|---|---|---|---|---|---|
| -1.0% | 60.57 | 46.86 | 37.18 | 29.98 | 24.40 |
| 1.0% | 68.24 | 53.11 | 42.42 | 34.47 | 28.33 |
| 3.0% | 76.52 | 59.84 | 48.06 | 39.31 | 32.54 |
| 5.0% | 85.43 | 67.08 | 54.13 | 44.51 | 37.07 |
| 7.0% | 95.02 | 74.86 | 60.65 | 50.09 | 41.93 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 72 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +0.7% a year | 12 / 20 |
| Balance sheet | net debt 2.9x EBITDA | 10 / 20 |
| Margins | EBITDA margin 20% | 10 / 20 |
Peers in Consumer Staples
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| NESN.SW (this company) | CHF 84.91 | -76.7% | 24.2 | 6.7 | 3.6% | 72 |
| ORK.OL Orkla ASA | NOK 102.30 | 32.1% | 14.5 | 2.3 | 9.8% | 82 |
| KHC Kraft Heinz | USD 24.46 | 27.8% | – | 0.8 | 6.5% | 36 |
| WN.TO George Weston Limited | CAD 109.72 | 26.2% | 39.8 | 9.1 | 1.2% | 72 |
| CA.PA Carrefour SA | EUR 13.49 | 24.7% | 28.9 | 0.8 | 8.8% | 72 |
| ABF.L Associated British Foods plc | GBP 19.60 | 20.0% | 14.9 | 1.2 | 3.2% | 82 |
| ADM Archer Daniels Midland | USD 70.55 | 16.7% | 13.8 | 1.4 | 3.0% | 64 |
| AXFO.ST Axfood AB | SEK 283.20 | 8.1% | 24.9 | 8.2 | 3.1% | 70 |
| DLTR Dollar Tree | USD 135.65 | 1.9% | 16.1 | 7.6 | – | 72 |
| Peer median | 16.1 | 1.9 | ||||
Dividends
Paid in the last 12 months: CHF 3.10 per share · yield 3.65% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 3.100 |
| 2025 | 3.050 |
| 2024 | 3.000 |
| 2023 | 2.950 |
| 2022 | 2.800 |
| 2021 | 2.750 |
Annual financial statement
Saved annual report · Fiscal year 2025 · EODHD annual statements · period ended 31 Dec 2025
| Revenue | CHF 89,885,000,000 |
|---|---|
| EBITDA | CHF 17,539,000,000 |
| EBIT | CHF 13,906,000,000 |
| Net income | CHF 9,033,000,000 |
| Free cash flow | CHF 11,377,000,000 |
| Capital expenditures | CHF 4,527,000,000 |
| Debt | CHF 57,852,000,000 |
| Cash | CHF 6,230,000,000 |
| Working capital | CHF -8,725,000,000 |
| Shares outstanding | 2,576,000,000 |
| Reported dividends per share | CHF 3.0470 |