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Signify N.V. (LIGHT) Fair Value & Analysis

Industrials · NL · Market cap €2.0B · ISIN NL0011821392

What is Signify N.V. really worth?

SN Signify N.V. LIGHT · AS
Price€15.50
Fair Value€38.52
Upside+148.5%
Quality63/100

A solid business, trading 60% below our fair value of €38.52.

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Strengths

Low debt · generates free cash flow
Ranks above peers (10/14)

Risks

!Weak Growth (revenue 5y −2.4 %/yr)
!Thin margins · 3.5% net margin
!Narrow moat 39/100
!Weak on past: 27 out of 100
Evidence: High Range €25.80 – €53.74

Fair value as of: Aug 31, 2026

From 24 valuation models · updated 5 days ago

Share price +1.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (€25.80). The market is more pessimistic than our downside scenario.
  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (€25.80 to €53.74) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€38.68 €13.97 Fair Value €38.52 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range €13.97 – €38.68 · fair‑value band €25.80 – €53.74 · the €15.50 price screens below the €38.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

Signify N.V. (LIGHT) currently trades at €15.50, while our model-based Fair Value estimate is €38.52, implying the stock looks roughly 59.8% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Industrials sector. Bull case: the Multiples group reads highest at a median of €44.89 per share, and 22 of the 24 models we run sit above the €15.50 price. Bear case: the Dividend Discount group reads lowest at €14.31, and 2 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Signify N.V. generated revenue of €5.6B at a net margin of 3.5%. Revenue declined 12.0% year over year. It earns a return on equity of 6.8%. Net debt stands at €958M. Fundamentals as of Aug 31, 2026

Our scenario range runs from €25.80 (bear case) to €53.74 (bull case); at €15.50, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 30% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at 149%, LIGHT screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €1.04 per share, which is 2.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence €24.71 €32.99 €46.87 81
Growth DCF €25.59 €33.44 €45.59 79
Owner Earnings €22.73 €30.40 €43.28 77
All 24 models by family
DCF Models
FCF DCF best evidence €24.71 €32.99 €46.87 81
Owner Earnings €22.73 €30.40 €43.28 77
5Y Revenue Exit €27.81 €42.02 €62.68 72
5Y EBITDA Exit €37.59 €58.95 €87.22 74
5Y P/E Exit €25.61 €38.22 €53.31 71
10Y Revenue Exit €25.47 €35.19 €45.61 68
10Y EBITDA Exit €31.69 €44.75 €58.75 69
10Y P/E Exit €25.04 €33.05 €40.59 65
Earnings-Based
Graham-Dodd €14.54 €17.77 €19.99 67
EPV €24.66 €28.37 €31.46 74
Dividend Discount
Gordon GGM €13.27 €14.31 €15.85 69
DDM Multi-Stage €13.27 €15.80 €19.06 67
Multiples
P/E Multiple €33.67 €44.89 €56.12 63
P/S Multiple €27.26 €36.34 €45.43 58
P/B Multiple €27.26 €36.34 €45.43 55
EV/EBIT €47.46 €64.13 €80.80 66
EV/EBITDA €56.05 €75.58 €95.11 67
EV/Revenue €33.15 €48.44 €63.74 53
Asset-Based
NCAV (Graham) €11.25 €15.07 €22.50 54
Growth DCF
Growth DCF €25.59 €33.44 €45.59 79
Rev-Margin DCF €27.81 €42.74 €61.00 72
Economic Profit
Residual Income €18.58 €20.07 €22.36 76
ROIC Compounder €24.66 €28.93 €33.22 72
Growth Earnings
Growth-Adj P/E €23.77 €33.96 €44.15 67

Widest divergence: Multiples (€44.89) versus Dividend Discount (€14.31). Highest evidence: FCF DCF (81).

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Key figures & financial health

P/E ratio 10.1
P/S ratio 0.44 P/E × margin
EPS (TTM) €1.54 price ÷ EPS = P/E 10.1
Dividend yield 8.2% payout 82.6%
Net margin 4.4% FY2025
Return on equity 6.8% TTM
More key figures
Profitability
Return on assets (EBIT) 6.1% avg 5y
Operating margin 7.1% TTM
Growth
Revenue (TTM) €5.6B TTM
Revenue growth (YoY) −12.0% 3y avg −8.5%
EPS growth (YoY) −90.6%
Balance sheet & cash flow
Free cash flow €399M FY2025
Net debt €958M FY2025 · ≈ 2.4 yrs of FCF

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 61 · Market factors (momentum, volatility) 24

Profitability 46
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 58
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 95
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Signify N.V. provides lighting products, systems, and services in Europe, the Americas, and internationally. It operates through Professional, Consumer, OEM, and Conventional segments.

Full company description

Signify N.V. provides lighting products, systems, and services in Europe, the Americas, and internationally. It operates through Professional, Consumer, OEM, and Conventional segments. The company offers LED products and connected lighting systems and services, including functional LED luminaires, LED and conventional lamps and tubes, and lighting components such as LED drivers, electronics, modules, and sensors. In addition, it produces lamps based on LED technologies, which include high-intensity discharge lamps, compact fluorescent, halogen, incandescent, and specialty lighting products consisting of projection lighting for consumers, electrical installers, distributors, and professional end-users. The company's LED systems and services are used for various market segments, including offices, commercial buildings, shops, hospitality venues, industry, agriculture, and outdoor environments. Signify N.V. was founded in 1891 and is headquartered in Eindhoven, the Netherlands.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Signify N.V. reported revenue of €5.8B in FY2025 versus €6.9B in FY2021, a compound −4.3%/yr. Reported net income was €254M in FY2025, compounding −10.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€5.8B
Latest YoY
−6.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−8.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.4%
Avg. revenue growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+4.1% (−4.1 + 8.2)
Revenue −4.3%/yr
FY21 €6.9B
FY22 €7.5B
FY23 €6.7B
FY24 €6.1B
FY25 €5.8B
Net income −10.6%/yr
FY21 €397M
FY22 €523M
FY23 €203M
FY24 €328M
FY25 €254M
Character of growth · EPS growth decomposed (2015-2025) +4.8 % p.a.
Revenue per share +0.1 %

of which total revenue −1.9 % · buybacks/dilution +2.0 %

EBIT margin +4.6 %
Tax rate +2.3 %
Residual (interest, one-offs) −2.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Signify N.V. Fair Value". https://www.fairvalue-calculator.com/stock/LIGHT

Peer Group

Electrical Equipment & Parts · 542 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside +149% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 7% · Above median
Revenue growth −12% · Bottom 25%
Dividend yield (TTM) 8.2% · Top 25%
Debt / equity 0.35× · Higher than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 10.1× · Cheaper than 75% of peers
P/B 0.86× · Cheaper than 75% of peers
P/S (TTM) 0.41× · Cheaper than 75% of peers
P/FCF 5.7× · Pricier than median
EV/EBITDA 4.7× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 0
FUTURE0 · sector 56
PAST27 · sector 26
HEALTH83 · sector 97
DIVIDEND100 · sector 23

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 −40%
ABB Ltd ABBN CHF 80.10 CHF 28.70 −64%
Delta Electronics (Thailand) Public Company TDED 10.40 SGD 1.47 SGD −86%
Vertiv Holdings VRT $257.08 $63.13 −75%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW −45%
Prysmian S.p.A PRY €117.10 €84.15 −28%
Legrand SA LR €139.65 €78.82 −44%
Sungrow Power Supply Co 300274 ¥86.40 ¥123.83 +43%
Hubbell Incorporated HUBB $443.31 $285.77 −36%
Shenzhen Inovance Technology Co 300124 ¥61.07 ¥33.04 −46%

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Frequently asked questions

Is Signify N.V. (LIGHT) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of €38.52 versus a price of €15.50, about +149% upside (undervalued).
What is the fair value of LIGHT?
Our model-based fair value for Signify N.V. is €38.52 (as of Aug 31, 2026), built from audited fundamentals. The current price: €15.50.
What is the quality score of LIGHT?
Signify N.V. has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Signify N.V. (LIGHT)?
Signify N.V. reported trailing-twelve-month revenue of about €5.6B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of LIGHT?
The net profit margin of Signify N.V. is about 3.5%, meaning it keeps roughly 3.5% of revenue as net income. Based on the latest reported figures.
Does Signify N.V. pay a dividend?
Signify N.V. currently shows a dividend yield of about 8.21% relative to its recent price (as of Aug 31, 2026).
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