Pirelli & C. S.p.A. (PIRC.MI) 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

+101.4%

€13.41

vs €6.66 price

Levered DCF

€15.07

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.47

Distress zone

Rating

A-

Overall 4 / 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	11.72×	11.64×	10.27×	9.52×	20.37×	103.75×	11.68×	12.91×
P/B	0.99×	1.01×	0.9×	0.75×	1.24×	1×	1.09×	1.24×
P/S	0.92×	0.86×	0.74×	0.6×	1.15×	1.03×	0.97×	1.07×
EV / EBITDA	5.13×	5.78×	5.49×	5.69×	8.89×	11.63×	6.74×	8.49×
Gross margin	32.8%	62.3%	66.2%	66.7%	68.9%	66.6%	67.5%	68.9%
Operating margin	9.8%	13.3%	12.2%	12.0%	10.8%	1.9%	14.0%	13.5%
Net margin	7.3%	6.9%	7.2%	6.3%	5.7%	1.0%	8.2%	8.3%
Current ratio	1.45×	1.28×	1.18×	1.32×	1.18×	1.57×	1.09×	1.22×
Debt / equity	0.47×	0.67×	0.72×	0.84×	1.08×	1.32×	1.14×	1.06×
Interest coverage	4.21×	3.83×	3.45×	5.09×	4.67×	0.64×	5.49×	5.11×
Dividend yield	4.2%	3.5%	4.5%	4.6%	1.3%	0.0%	3.6%	0.2%
Payout ratio	52.1%	43.7%	46.5%	44.4%	26.4%	0.0%	42.4%	1.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.9%	8.1%	8.7%	7.8%	6.2%	1.0%	9.3%	9.7%
Return on invested capital	4.3%	6.3%	5.8%	5.1%	3.6%	0.5%	4.7%	5.8%
Return on assets	3.7%	3.4%	3.5%	3.0%	2.2%	0.3%	3.2%	3.3%
Free cash flow yield	14.9%	15.2%	19.5%	19.9%	10.4%	9.6%	12.3%	3.4%
Earnings yield	8.0%	8.0%	9.7%	10.4%	5.0%	1.0%	8.5%	7.8%
Enterprise value	€7.7B	€8.2B	€7.6B	€7.2B	€9.5B	€8B	€8.9B	€9B
Net debt / EBITDA	0.96×	1.65×	1.95×	2.53×	3.18×	5.2×	2.85×	3.23×
Cash conversion cycle (days)	-43	-44	-56	-10	-43	-122	-33	-62