As of June 12, 2025, Ab Dynamics PLC's estimated intrinsic value ranges from $697.28 to $1174.47 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1174.47 | -33.3% |
| Discounted Cash Flow (5Y) | $929.11 | -47.2% |
| Dividend Discount Model (Multi-Stage) | $841.19 | -52.2% |
| Dividend Discount Model (Stable) | $697.28 | -60.4% |
| Earnings Power Value | $792.75 | -55.0% |
Is Ab Dynamics PLC (ABDP.L) undervalued or overvalued?
With the current market price at $1760.00, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Ab Dynamics PLC's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.78 | 0.89 |
| Cost of equity | 8.6% | 11.2% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 14.9% | 19.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 8.6% | 11.1% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $929 | $184M | 78.6% |
| 10-Year Growth | $1,174 | $240M | 61.6% |
| 5-Year EBITDA | $1,609 | $339M | 88.4% |
| 10-Year EBITDA | $1,815 | $386M | 76.1% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $15M |
| Discount Rate (WACC) | 11.1% - 8.6% |
| Enterprise Value | $134M - $173M |
| Net Debt | $(27)M |
| Equity Value | $161M - $200M |
| Outstanding Shares | 0M |
| Fair Value | $706 - $879 |
| Selected Fair Value | $792.75 |
| Metric | Value |
|---|---|
| Market Capitalization | $401M |
| Enterprise Value | $373M |
| Trailing P/E | 37.68 |
| Forward P/E | 34.47 |
| Trailing EV/EBITDA | 14.90 |
| Current Dividend Yield | 43.02% |
| Dividend Growth Rate (5Y) | 25.08% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $352.34 |
| Discounted Cash Flow (5Y) | 25% | $232.28 |
| Dividend Discount Model (Multi-Stage) | 20% | $168.24 |
| Dividend Discount Model (Stable) | 15% | $104.59 |
| Earnings Power Value | 10% | $79.28 |
| Weighted Average | 100% | $936.72 |
Based on our comprehensive valuation analysis, Ab Dynamics PLC's weighted average intrinsic value is $936.72, which is approximately 46.8% below the current market price of $1760.00.
Key investment considerations:
Given these factors, we believe Ab Dynamics PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.