Koninklijke Philips N.V. (PHG) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+86.3%

$51.26

vs $27.52 price

Levered DCF

$9.52

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.08

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.26×	-32.6×	-41.65×	-8.33×	44.77×	32.82×	32.62×	25.02×
P/B	2.02×	1.9×	1.61×	1.01×	1.89×	3.28×	3.02×	2.26×
P/S	1.24×	1.27×	1.07×	0.75×	1.59×	2.25×	2.22×	1.51×
EV / EBITDA	10.41×	15.1×	23.81×	169.6×	15.51×	13.54×	13.65×	10.9×
Gross margin	45.2%	43.1%	41.0%	40.4%	41.8%	45.7%	46.4%	47.2%
Operating margin	8.0%	2.9%	-0.6%	-8.6%	3.2%	7.3%	8.0%	9.5%
Net margin	5.0%	-3.9%	-2.6%	-9.0%	19.3%	6.9%	6.8%	6.0%
Current ratio	1.32×	1.23×	1.2×	1.29×	1.39×	1.45×	1.36×	1.21×
Debt / equity	0.74×	0.62×	0.61×	0.55×	0.42×	0.58×	0.42×	0.4×
Interest coverage	4.28×	1.57×	-0.38×	-6.27×	3.37×	6.52×	6.53×	6.51×
Dividend yield	1.5%	0.0%	0.0%	3.2%	2.1%	0.0%	1.3%	1.5%
Payout ratio	36.6%	-0.2%	-0.5%	-26.9%	17.2%	0.1%	43.4%	36.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.2%	-5.8%	-3.9%	-12.1%	23.0%	10.0%	9.3%	9.0%
Return on invested capital	5.3%	-17.0%	-0.5%	-6.2%	2.3%	4.9%	5.3%	7.7%
Return on assets	3.3%	-2.4%	-1.6%	-5.2%	10.7%	4.3%	4.3%	4.2%
Free cash flow yield	4.0%	5.9%	10.0%	-4.9%	5.4%	5.5%	4.5%	3.4%
Earnings yield	4.0%	-3.1%	-2.4%	-12.1%	12.2%	3.1%	3.1%	4.0%
Enterprise value	$27.5B	$27.9B	$24.8B	$19.5B	$31B	$42.6B	$41.8B	$30.5B
Net debt / EBITDA	2×	2.75×	5.21×	53.65×	1.88×	1.18×	1.25×	1.12×
Cash conversion cycle (days)	107	123	139	167	149	122	134	98