As of May 25, 2025, Air Partner PLC's estimated intrinsic value ranges from $106.72 to $206.41 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $206.41 | +65.8% |
| Discounted Cash Flow (5Y) | $189.89 | +52.5% |
| Dividend Discount Model (Multi-Stage) | $108.66 | -12.7% |
| Dividend Discount Model (Stable) | $106.72 | -14.3% |
| Earnings Power Value | $192.90 | +54.9% |
Is Air Partner PLC (AIR.L) undervalued or overvalued?
With the current market price at $124.50, the stock appears to be significantly 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 Air Partner 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.87 | 1.02 |
| Cost of equity | 7.6% | 10.4% |
| Cost of debt | 4.0% | 6.7% |
| Tax rate | 29.5% | 34.1% |
| Debt/Equity ratio | 0.09 | 0.09 |
| After-tax WACC | 7.2% | 9.9% |
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 | $190 | $92M | 71.5% |
| 10-Year Growth | $206 | $103M | 50.5% |
| 5-Year EBITDA | $141 | $62M | 57.7% |
| 10-Year EBITDA | $170 | $80M | 36.4% |
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 | $8M |
| Discount Rate (WACC) | 9.9% - 7.2% |
| Enterprise Value | $79M - $109M |
| Net Debt | $(24)M |
| Equity Value | $104M - $134M |
| Outstanding Shares | 1M |
| Fair Value | $168 - $218 |
| Selected Fair Value | $192.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $77M |
| Enterprise Value | $52M |
| Trailing P/E | 11.90 |
| Forward P/E | 12.60 |
| Trailing EV/EBITDA | 4.35 |
| Current Dividend Yield | 322.96% |
| Dividend Growth Rate (5Y) | -33.35% |
| Debt-to-Equity Ratio | 0.09 |
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% | $61.92 |
| Discounted Cash Flow (5Y) | 25% | $47.47 |
| Dividend Discount Model (Multi-Stage) | 20% | $21.73 |
| Dividend Discount Model (Stable) | 15% | $16.01 |
| Earnings Power Value | 10% | $19.29 |
| Weighted Average | 100% | $166.42 |
Based on our comprehensive valuation analysis, Air Partner PLC's weighted average intrinsic value is $166.42, which is approximately 33.7% above the current market price of $124.50.
Key investment considerations:
Given these factors, we believe Air Partner PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.