As of June 21, 2025, Adient PLC's estimated intrinsic value ranges from $10.39 to $50.91 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $22.16 | +17.5% |
| Discounted Cash Flow (5Y) | $17.74 | -6.0% |
| Dividend Discount Model (Multi-Stage) | $10.39 | -45.0% |
| Earnings Power Value | $50.91 | +169.8% |
Is Adient PLC (ADNT) undervalued or overvalued?
With the current market price at $18.87, 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 Adient 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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.04 | 1.29 |
| Cost of equity | 8.7% | 12.1% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 15.7% | 20.0% |
| Debt/Equity ratio | 1.55 | 1.55 |
| After-tax WACC | 6.0% | 7.2% |
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 | $18 | $3,133M | 78.3% |
| 10-Year Growth | $22 | $3,504M | 61.8% |
| 5-Year EBITDA | $8 | $2,278M | 70.2% |
| 10-Year EBITDA | $13 | $2,767M | 51.6% |
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 | $385M |
| Discount Rate (WACC) | 7.2% - 6.0% |
| Enterprise Value | $5,374M - $6,465M |
| Net Debt | $1,642M |
| Equity Value | $3,732M - $4,823M |
| Outstanding Shares | 84M |
| Fair Value | $44 - $57 |
| Selected Fair Value | $50.91 |
| Metric | Value |
|---|---|
| Market Capitalization | $1585M |
| Enterprise Value | $3227M |
| Trailing P/E | 0.00 |
| Forward P/E | 15.03 |
| Trailing EV/EBITDA | 4.20 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -100.00% |
| Debt-to-Equity Ratio | 1.55 |
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% | $6.65 |
| Discounted Cash Flow (5Y) | 29% | $4.44 |
| Dividend Discount Model (Multi-Stage) | 24% | $2.08 |
| Earnings Power Value | 12% | $5.09 |
| Weighted Average | 100% | $21.47 |
Based on our comprehensive valuation analysis, Adient PLC's weighted average intrinsic value is $21.47, which is approximately 13.8% above the current market price of $18.87.
Key investment considerations:
Given these factors, we believe Adient PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.