As of May 28, 2025, Aberforth Split Level Income Trust PLC's estimated intrinsic value ranges from $50.11 to $109.62 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $101.95 | +22.1% |
| Discounted Cash Flow (5Y) | $98.91 | +18.5% |
| Dividend Discount Model (Multi-Stage) | $62.34 | -25.3% |
| Dividend Discount Model (Stable) | $50.11 | -40.0% |
| Earnings Power Value | $109.62 | +31.3% |
Is Aberforth Split Level Income Trust PLC (ASIT.L) undervalued or overvalued?
With the current market price at $83.50, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Aberforth Split Level Income Trust 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 | 0.89 | 1.16 |
| Cost of equity | 9.3% | 13.1% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 0.27 | 0.27 |
| After-tax WACC | 8.2% | 11.3% |
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 | $99 | $255M | 70.6% |
| 10-Year Growth | $102 | $263M | 48.6% |
| 5-Year EBITDA | $53 | $134M | 44.3% |
| 10-Year EBITDA | $70 | $177M | 23.8% |
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 | $27M |
| Discount Rate (WACC) | 11.3% - 8.2% |
| Enterprise Value | $238M - $328M |
| Net Debt | $(6)M |
| Equity Value | $244M - $334M |
| Outstanding Shares | 3M |
| Fair Value | $93 - $127 |
| Selected Fair Value | $109.62 |
| Metric | Value |
|---|---|
| Market Capitalization | $220M |
| Enterprise Value | $214M |
| Trailing P/E | 16.71 |
| Forward P/E | 12.63 |
| Trailing EV/EBITDA | 4.35 |
| Current Dividend Yield | 432.53% |
| Dividend Growth Rate (5Y) | 0.47% |
| Debt-to-Equity Ratio | 0.27 |
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% | $30.59 |
| Discounted Cash Flow (5Y) | 25% | $24.73 |
| Dividend Discount Model (Multi-Stage) | 20% | $12.47 |
| Dividend Discount Model (Stable) | 15% | $7.52 |
| Earnings Power Value | 10% | $10.96 |
| Weighted Average | 100% | $86.26 |
Based on our comprehensive valuation analysis, Aberforth Split Level Income Trust PLC's weighted average intrinsic value is $86.26, which is approximately 3.3% above the current market price of $83.50.
Key investment considerations:
Given these factors, we believe Aberforth Split Level Income Trust PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.