As of June 3, 2025, Ascential PLC's estimated intrinsic value ranges from $179.57 to $2642.48 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $277.97 | -51.0% |
| Discounted Cash Flow (5Y) | $209.62 | -63.0% |
| Dividend Discount Model (Multi-Stage) | $179.57 | -68.3% |
| Dividend Discount Model (Stable) | $2642.48 | +366.0% |
| Earnings Power Value | $722.41 | +27.4% |
Is Ascential PLC (ASCL.L) undervalued or overvalued?
With the current market price at $567.00, 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 Ascential 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 | 0.71 | 0.91 |
| Cost of equity | 8.2% | 11.4% |
| Cost of debt | 5.0% | 5.2% |
| Tax rate | 18.7% | 24.5% |
| Debt/Equity ratio | 0.29 | 0.29 |
| After-tax WACC | 7.3% | 9.7% |
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 | $210 | $657M | 75.3% |
| 10-Year Growth | $278 | $795M | 63.2% |
| 5-Year EBITDA | $91 | $416M | 61.0% |
| 10-Year EBITDA | $147 | $530M | 44.8% |
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 | $141M |
| Discount Rate (WACC) | 9.7% - 7.3% |
| Enterprise Value | $1,456M - $1,935M |
| Net Debt | $232M |
| Equity Value | $1,224M - $1,703M |
| Outstanding Shares | 2M |
| Fair Value | $604 - $841 |
| Selected Fair Value | $722.41 |
| Metric | Value |
|---|---|
| Market Capitalization | $1148M |
| Enterprise Value | $1380M |
| Trailing P/E | 3.88 |
| Forward P/E | 91.37 |
| Trailing EV/EBITDA | 4.25 |
| Current Dividend Yield | 3920.35% |
| Dividend Growth Rate (5Y) | -100.00% |
| Debt-to-Equity Ratio | 0.29 |
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% | $83.39 |
| Discounted Cash Flow (5Y) | 25% | $52.41 |
| Dividend Discount Model (Multi-Stage) | 20% | $35.91 |
| Dividend Discount Model (Stable) | 15% | $396.37 |
| Earnings Power Value | 10% | $72.24 |
| Weighted Average | 100% | $640.32 |
Based on our comprehensive valuation analysis, Ascential PLC's weighted average intrinsic value is $640.32, which is approximately 12.9% above the current market price of $567.00.
Key investment considerations:
Given these factors, we believe Ascential PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.