Siemens
How a sum-of-the-parts valuation separates a conglomerate's segments and why a strong division may not lift the whole stock.
- Rating
- Price target
- EUR 100.00
- Published
- March 12, 2015
- Length
- 22 pages
- Sector
- Industrials
- Market
- Europe
What the analyst argued
Nomura initiated Siemens at Neutral with an EUR 100 target, slightly below the share price. Siemens sat at the forefront of the industrial internet through Industrie 4.0 and its automation franchise, but the breadth of the portfolio diluted that exposure: weak developed-market utility spending and declining oil and gas investment offset recovery in early-cycle European businesses and healthcare. With 44% of the backlog in project business, one-off charges remained a risk, and 4% underlying EPS growth put the P/EG above 2x. A sum-of-the-parts showed value in an independent healthcare business, but a spin was not imminent.
Lead analysts: Alexander Virgo, Maggie Paxton, Felix Wienen.
Inside the report
- 01Key data on Siemens
- 02Great industrial internet position diluted by everything else
- 03Industrial software position strength offset by balance of the portfolio
- 04Positioning across the industrial automation hierarchy
- 05Order backlog and project business
- 06One-off charges in the Siemens EBIT line
- 07Valuation (EV/Industrial sales, relative multiples, sum-of-the-parts)
- 08Key risks to our investment case
- 09Fiscal Headline Data
- 10Cash Flow
- DCF
- Sum-of-the-parts
- P/E
- EV/EBITDA
- Comparable companies
Includes a multi-year earnings model with the income statement, balance sheet, and cash flow forecasts the valuation is built on.
Read the report
22 pages
Tap the cover to open the PDF.Published by Nomura on March 12, 2015 and hosted here for educational use; the report and everything in it belongs to Nomura. The rating, estimates, and price target are the analysts’ view on that date, more than a decade ago, and are not a recommendation today. Copy first uploaded October 5, 2026.
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