As of May 27, 2025, Accrol Group Holdings PLC's estimated intrinsic value ranges from $22.61 to $68.08 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $68.08 | +75.5% |
| Discounted Cash Flow (5Y) | $46.67 | +20.3% |
| Dividend Discount Model (Multi-Stage) | $22.61 | -41.7% |
| Earnings Power Value | $24.79 | -36.1% |
Is Accrol Group Holdings PLC (ACRL.L) undervalued or overvalued?
With the current market price at $38.80, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Accrol Group Holdings 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 | 0.6 | 0.7 |
| Cost of equity | 7.6% | 9.9% |
| Cost of debt | 5.3% | 15.8% |
| Tax rate | 16.4% | 20.8% |
| Debt/Equity ratio | 0.52 | 0.52 |
| After-tax WACC | 6.5% | 10.8% |
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 | $47 | $218M | 81.6% |
| 10-Year Growth | $68 | $290M | 65.4% |
| 5-Year EBITDA | $37 | $185M | 78.2% |
| 10-Year EBITDA | $55 | $245M | 59.1% |
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 | $12M |
| Discount Rate (WACC) | 10.8% - 6.5% |
| Enterprise Value | $109M - $181M |
| Net Debt | $62M |
| Equity Value | $47M - $119M |
| Outstanding Shares | 3M |
| Fair Value | $14 - $35 |
| Selected Fair Value | $24.79 |
| Metric | Value |
|---|---|
| Market Capitalization | $130M |
| Enterprise Value | $192M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 7.35 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -19.09% |
| Debt-to-Equity Ratio | 0.52 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $20.42 |
| Discounted Cash Flow (5Y) | 29% | $11.67 |
| Dividend Discount Model (Multi-Stage) | 24% | $4.52 |
| Earnings Power Value | 12% | $2.48 |
| Weighted Average | 100% | $45.99 |
Based on our comprehensive valuation analysis, Accrol Group Holdings PLC's weighted average intrinsic value is $45.99, which is approximately 18.5% above the current market price of $38.80.
Key investment considerations:
Given these factors, we believe Accrol Group Holdings PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.