adidas AG
adidas AG, together with its subsidiaries, designs, develops, produces, and markets a range of athletic and sports lifestyle products in Europe, Greater China, Japan, South Korea, Latin America, North America, and internationally. The company offers footwear and apparel, as well as accessories and …
adidas AG, together with its subsidiaries, designs, develops, produces, and markets a range of athletic and sports lifestyle products in Europe, Greater China, Japan, South Korea, Latin America, North America, and internationally. The company offers footwear and apparel, as well as accessories and gear, including bags, balls, sunglasses, and fitness equipment under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores, mono-branded franchise stores, shop-in-shops, joint ventures with retail partners, and co-branded stores, as well as through its wholesale and e-commerce platforms. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Other models: EUR 125.66–207.65 (median 174.64). 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 within modeled range
Free-cash-flow DCF using a three-year average of free cash flow, because the latest figure is depressed by heavy investment or one-off items, with cash, debt, and shares from the latest report. Base assumptions are 6.31% growth, 3.1% terminal growth, and 10.8% 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 6.31%, discount rate 10.80%, terminal growth 3.10% (sector defaults). See a worked example.
Blended growth assumption: 6.3% (sector default 7.2%, own revenue history 3.3%, analyst revenue consensus 7.4%).
Analyst consensus expects revenue growth of 7.4% a year; the growth assumption used is 6.3%.
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 — EUR 186.37 (+7.2%)
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EPS-based Gordon proxy
— EUR 125.66 (-27.7%)
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)
— EUR 202.74 (+16.6%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— EUR 174.64 (+0.5%)
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)
— EUR 207.65 (+19.4%)
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)
— EUR 201.67 (+16.0%)
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)
— EUR 554.62 (+219.0%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear EUR 135.01 | -28.8% |
| Base EUR 186.37 | 6.7% |
| Bull EUR 275.07 | 36.8% |
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 EUR 173.85 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.1%, discount 10.8%).
Compare: the market implies 4.8% a year, this model assumes 6.3%. The model is more optimistic than the price, which is why it reads as undervalued.
Sensitivity: base value per share
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
These are assumption-based scenarios, not a confidence interval. Scroll horizontally to see all discount rates.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| 2.3% | 215.65 | 180.43 | 154.35 | 134.27 | 118.32 |
| 4.3% | 237.23 | 198.48 | 169.79 | 147.71 | 130.18 |
| 6.3% | 260.44 | 217.87 | 186.37 | 162.13 | 142.89 |
| 8.3% | 285.37 | 238.68 | 204.15 | 177.59 | 156.52 |
| 10.3% | 312.11 | 261.00 | 223.21 | 194.14 | 171.10 |
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: 74 / 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 | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 4 of 5 years | 16 / 20 |
| Growth | revenue +4.3% a year | 12 / 20 |
| Balance sheet | net debt 1.1x EBITDA | 20 / 20 |
| Margins | EBITDA margin 12% | 10 / 20 |
Peers in Consumer Discretionary
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 |
|---|---|---|---|---|---|---|
| ADS.DE (this company) | EUR 173.85 | 6.7% | 18.5 | 4.8 | 1.2% | 74 |
| KGF.L Kingfisher plc | GBP 3.70 | 45.5% | 26.8 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 22.72 | 44.3% | 13.8 | 0.8 | 3.1% | 70 |
| INCH.L Inchcape plc | GBP 6.33 | 38.1% | 8.8 | 1.9 | 4.2% | 80 |
| ZAL.DE Zalando SE | EUR 27.37 | 36.9% | 108.0 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 85.74 | 36.4% | 10.9 | 5.0 | – | 100 |
| LULU Lululemon Athletica | USD 109.52 | 34.7% | 8.7 | 2.6 | – | 100 |
| EXPE Expedia Group | USD 268.04 | 30.8% | 15.6 | 19.8 | 0.7% | 100 |
| BKNG Booking Holdings | USD 166.20 | 29.9% | 17.4 | – | 1.0% | 100 |
| Peer median | 14.7 | 2.6 | ||||
Dividends
Paid in the last 12 months: EUR 2.80 per share · yield 1.61% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 2.800 |
| 2025 | 2.000 |
| 2024 | 0.700 |
| 2023 | 0.700 |
| 2022 | 3.300 |
| 2021 | 3.000 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 15:55
| Revenue | EUR 26,663,000,000 |
|---|---|
| EBITDA | EUR 3,299,000,000 |
| EBIT | EUR 2,446,000,000 |
| Net income | EUR 1,624,000,000 |
| Free cash flow | EUR 2,530,000,000 |
| Capital expenditures | EUR 467,000,000 |
| Debt | EUR 5,984,000,000 |
| Cash | EUR 2,327,000,000 |
| Working capital | EUR 3,891,000,000 |
| Shares outstanding | 173,039,216 |