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Nestle S.A. (NESN) Fair Value & Analysis

Consumer Defensive · CH · Market cap CHF 216B · ISIN CH0038863350

What is Nestle S.A. really worth?

NS Nestle S.A. NESN · SW
PriceCHF 78.31
Fair ValueCHF 57.26
Upside−26.9%
Quality69/100

A solid business, but trading 37% above our fair value of CHF 57.26.

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Strengths

Solidly profitable · 10.1% net margin
Moderate debt · generates free cash flow
Wide moat 69/100

Risks

!Weak Growth (revenue 5y +1.1 %/yr)
!Mixed vs. peers (6/15)

For context

·3.96% dividend yield
Evidence: High Range CHF 35.23 – CHF 81.98

Fair value as of: Aug 30, 2026

From 24 valuation models · updated 6 days ago

Share price −3.7% over the past month.

What runs behind every stock

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

What matters now

  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (CHF 35.23 to CHF 81.98) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

CHF 110.76 CHF 68.21 Fair Value CHF 57.26 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range CHF 68.21 – CHF 110.76 · fair‑value band CHF 35.23 – CHF 81.98 · the CHF 78.31 price screens above the CHF 57.26 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Nestle S.A. (NESN) currently trades at CHF 78.31, while our model-based Fair Value estimate is CHF 57.26, implying the stock looks roughly 36.8% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Consumer Defensive sector. Bull case: the Multiples group reads highest at a median of CHF 59.70 per share, and 1 of the 24 models we run sit above the CHF 78.31 price. Bear case: the Asset-Based group reads lowest at CHF 8.55, and 23 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Nestle S.A. generated revenue of CHF 89.9B at a net margin of 10.1%. Revenue declined 2.2% year over year. It earns a return on equity of 26.5%. Net debt stands at CHF 53.3B. Fundamentals as of Aug 30, 2026

Our scenario range runs from CHF 35.23 (bear case) to CHF 81.98 (bull case); at CHF 78.31, the current price sits within 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 7% below its 52-week high and 17% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at −25% fair-value upside, at −27%, NESN screens richer 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 CHF 0.2775 per share, which is 0.5 % 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 CHF 29.91 CHF 49.07 CHF 85.93 78
Growth DCF CHF 32.23 CHF 50.99 CHF 84.37 77
5Y EBITDA Exit CHF 37.97 CHF 65.86 CHF 102.80 74
All 24 models by family
DCF Models
FCF DCF CHF 29.91 CHF 49.07 CHF 85.93 78
Owner Earnings CHF 17.04 CHF 30.74 CHF 57.12 73
5Y Revenue Exit CHF 22.52 CHF 39.10 CHF 63.18 71
5Y EBITDA Exit CHF 37.97 CHF 65.86 CHF 102.80 74
5Y P/E Exit CHF 31.22 CHF 54.17 CHF 81.60 69
10Y Revenue Exit CHF 23.94 CHF 36.79 CHF 50.50 67
10Y EBITDA Exit CHF 34.54 CHF 53.73 CHF 74.31 68
10Y P/E Exit CHF 30.35 CHF 46.33 CHF 61.57 64
Earnings-Based
Graham-Dodd CHF 23.88 CHF 29.19 CHF 32.83 67
EPV CHF 29.89 CHF 37.87 CHF 44.96 74
Dividend Discount
Gordon GGM CHF 29.35 CHF 32.28 CHF 36.78 69
DDM Multi-Stage CHF 29.35 CHF 37.46 CHF 49.19 67
Multiples
P/E Multiple CHF 55.31 CHF 73.75 CHF 92.18 63
P/S Multiple CHF 41.75 CHF 55.67 CHF 69.58 58
P/B Multiple CHF 44.77 CHF 59.70 CHF 74.62 55
EV/EBIT CHF 55.41 CHF 78.98 CHF 102.56 65
EV/EBITDA CHF 52.54 CHF 75.16 CHF 97.78 67
EV/Revenue CHF 21.22 CHF 36.88 CHF 52.53 52
Asset-Based
NCAV (Graham) CHF 6.38 CHF 8.55 CHF 12.76 54
Growth DCF
Growth DCF CHF 32.23 CHF 50.99 CHF 84.37 77
Rev-Margin DCF CHF 22.52 CHF 40.12 CHF 61.80 71
Economic Profit
Residual Income CHF 21.40 CHF 25.41 CHF 76.05 66
ROIC Compounder CHF 29.89 CHF 40.08 CHF 50.96 72
Growth Earnings
Growth-Adj P/E CHF 39.06 CHF 55.79 CHF 72.53 67

Widest divergence: Multiples (CHF 59.70) versus Asset-Based (CHF 8.55). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 22.3
P/S ratio 2.25 P/E × margin
EPS (TTM) CHF 3.51 price ÷ EPS = P/E 22.3
Dividend yield 4.0% payout 88.3%
Net margin 10.1% FY2025
Return on equity 26.5% TTM
More key figures
Profitability
Return on assets (EBIT) 10.1% avg 5y
Operating margin 14.9% TTM
Growth
Revenue (TTM) CHF 89.9B TTM
Revenue growth (YoY) −2.2% 3y avg −1.9%
EPS growth (YoY) −24.0%
Balance sheet & cash flow
Free cash flow CHF 11.4B FY2025
Net debt CHF 53.3B FY2025 · ≈ 4.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 64 · Market factors (momentum, volatility) 61

Profitability 60
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 67
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 52
Distance to the 52-week high (market factor)
Net Issuance 94
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

Nestlé S.A., together with its subsidiaries, manufactures and distributes food and beverage, and nutritional science products in the United States, Brazil, Mexico, Greater China, the Philippines, India, the United Kingdom, France, Germany, Switzerland, and internationally.

Full company description

Nestlé S.A., together with its subsidiaries, manufactures and distributes food and beverage, and nutritional science products in the United States, Brazil, Mexico, Greater China, the Philippines, India, the United Kingdom, France, Germany, Switzerland, and internationally. The company offers cereals, chocolate and confectionery, coffee, culinary, chilled and frozen food, dairy, drinks, food service, ice cream, nutrition and health, petcare, water, plant-based portfolio, and recipe products. It sells its products under the Nesquik Cereal, Fitness, Cheerios, Lion Cereals, Cini Minis, KitKat Cereal, Chocapic, Koko Krunch, Shreddies, Shredded Wheat Original, Corn Flakes, Trix Cereal, Aero, Baci Perugina, KitKat, Milkybar, Smarties, Cailler, Quality Street, Garoto, Nestlé Toll House, Munch, Damak, Hsu Fu Chi, Sahne Nuss, Nestlé Sustainably Sourced Cocoa, Blue Bottle Coffee, Nescafé, Nescafé Dolce Gusto, Nespresso, Starbucks Coffee At Home, DiGiorno, Garden Gourmet, Maggi, Thomy, Stouffer's, Hot Pockets, Lean Cuisine, Life Cuisine, Buitoni, Nestlé carnation, Nestlé Coffee Mate, and Nestea brands. The company also offers its products under the Roastelier by Nescafé, Plant-based and so good!, Milo, Chef, Maggi Professional, La Lechera, Minor's, Antica Gelateria Del Corso, Drumstick, Extrême, Häagen-Dazs, Maxibon, Mövenpick, Nancare, Gerber, Cerelac, Nestum, Alfaré HMO, Athéra HMO, Alfamino HMO, Bear Brand, Nido, Orgain, Nestlé Vital, Garden of Life, Pure Encapsulations, Solgar, Compleat, Impact, Peptamen, Vitaflo, Resource, Cat Chow, Dentalife, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet, Purina, Purina ONE, Purina Pro Plan, Purina Pro Plan Veterinary Diets, Acqua Panna, Nestlé Pure Life, Perrier, S.Pellegrino, Sanpellegrino, Buxton, Erikli, Levissima, Vittel, Contrex, HENNIEZ, Hépar, La Vie, Naleczowianka, and Essentia brands. The company was founded in 1866 and is headquartered in Vevey, Switzerland. Aimmune Therapeutics, Inc. operates as a subsidiary of Nestlé S.A.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nestle S.A. reported revenue of CHF 89.5B in FY2025 versus CHF 87.5B in FY2021, a compound +0.6%/yr. Reported net income was CHF 9.0B in FY2025, compounding −14.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
CHF 89.5B
Latest YoY
−2.4%
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.
−1.9%
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.
+1.1%
Avg. revenue growth/yr (27Y) 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.
+0.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
0.0% (−4.0 + 4.0)
Revenue +0.6%/yr
FY21 CHF 87.5B
FY22 CHF 94.8B
FY23 CHF 93.4B
FY24 CHF 91.7B
FY25 CHF 89.5B
Net income −14.5%/yr
FY21 CHF 16.9B
FY22 CHF 9.3B
FY23 CHF 11.2B
FY24 CHF 10.9B
FY25 CHF 9.0B
Character of growth · EPS growth decomposed (2014-2025) +1.8 % p.a.
Revenue per share +2.3 %

of which total revenue +0.2 % · buybacks/dilution +2.1 %

EBIT margin +1.7 %
Tax rate +0.7 %
Residual (interest, one-offs) −2.8 %

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).

NESN screens 37% overvalued. Compare with Danone S.A →

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Cite: Fair Value Calculator (2026). "Nestle S.A. Fair Value". https://www.fairvalue-calculator.com/stock/NESN

Peer Group

Packaged Foods · 649 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 69 · Top 25%
Fair Value upside −27% · Below median
Return on equity (TTM) 27% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth −2% · Below median
Dividend yield (TTM) 4.0% · Above median
Debt / equity 1.34× · Higher than 75% of peers

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 22.3× · Pricier than median
P/B 8.12× · Pricier than 75% of peers
P/S (TTM) 2.96× · Pricier than 75% of peers
P/FCF 23.4× · Pricier than 75% of peers
EV/EBITDA 18.4× · Pricier than 75% of peers
PEG 2.31× · Pricier than median

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
VALUE0 · sector 26
FUTURE0 · sector 21
PAST100 · sector 28
HEALTH33 · sector 96
DIVIDEND79 · sector 53

VALUE 0: the price sits above our fair-value range.

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 Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Danone S.A BN €64.28 €48.41 −25%
Nestlé India Limited NESTLEIND ₹1,478 ₹251.94 −83%
The Kraft Heinz Company KHC $25.13 $24.59 −2%
Foshan Haitian Flavouring and Food Company 603288 ¥35.05 ¥21.93 −37%
Inner Mongolia Yili Industrial Group 600887 ¥25.51 ¥32.50 +27%
Yihai Kerry Arawana Holdings 300999 ¥25.28 ¥9.89 −61%
General Mills, Inc GIS $40.44 $28.32 −30%
Wilmar International Limited F34 3.64 SGD 3.89 SGD +7%
Britannia Industries Limited BRITANNIA ₹5,511 ₹1,765 −68%
McCormick & Company MKCV $55.65 $43.29 −22%

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Frequently asked questions

Is Nestle S.A. (NESN) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of CHF 57.26 versus a price of CHF 78.31, about −27% upside (overvalued).
What is the fair value of NESN?
Our model-based fair value for Nestle S.A. is CHF 57.26 (as of Aug 30, 2026), built from audited fundamentals. The current price: CHF 78.31.
What is the quality score of NESN?
Nestle S.A. has a Quality Score of 69/100. 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 Nestle S.A. (NESN)?
Nestle S.A. reported trailing-twelve-month revenue of about CHF 89.9B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of NESN?
The net profit margin of Nestle S.A. is about 10.1%, meaning it keeps roughly 10.1% of revenue as net income. Based on the latest reported figures.
Does Nestle S.A. pay a dividend?
Nestle S.A. currently shows a dividend yield of about 3.96% relative to its recent price (as of Aug 30, 2026).
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