As of May 22, 2025, Andrews Sykes Group PLC's estimated intrinsic value ranges from $527.39 to $792.95 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $792.95 | +50.3% |
| Discounted Cash Flow (5Y) | $720.46 | +36.6% |
| Dividend Discount Model (Multi-Stage) | $784.29 | +48.7% |
| Dividend Discount Model (Stable) | $527.39 | -0.0% |
| Earnings Power Value | $750.29 | +42.2% |
Is Andrews Sykes Group PLC (ASY.L) undervalued or overvalued?
With the current market price at $527.50, 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 Andrews Sykes Group 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 | 0.46 | 0.56 |
| Cost of equity | 6.7% | 8.9% |
| Cost of debt | 4.5% | 4.6% |
| Tax rate | 19.8% | 20.6% |
| Debt/Equity ratio | 0.07 | 0.07 |
| After-tax WACC | 6.5% | 8.5% |
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 | $720 | $295M | 75.3% |
| 10-Year Growth | $793 | $325M | 56.4% |
| 5-Year EBITDA | $392 | $157M | 53.8% |
| 10-Year EBITDA | $518 | $210M | 32.6% |
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 | $23M |
| Discount Rate (WACC) | 8.5% - 6.5% |
| Enterprise Value | $266M - $348M |
| Net Debt | $(7)M |
| Equity Value | $273M - $355M |
| Outstanding Shares | 0M |
| Fair Value | $652 - $848 |
| Selected Fair Value | $750.29 |
| Metric | Value |
|---|---|
| Market Capitalization | $221M |
| Enterprise Value | $214M |
| Trailing P/E | 12.76 |
| Forward P/E | 11.88 |
| Trailing EV/EBITDA | 3.80 |
| Current Dividend Yield | 1617.04% |
| Dividend Growth Rate (5Y) | 37.37% |
| Debt-to-Equity Ratio | 0.07 |
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% | $237.89 |
| Discounted Cash Flow (5Y) | 25% | $180.12 |
| Dividend Discount Model (Multi-Stage) | 20% | $156.86 |
| Dividend Discount Model (Stable) | 15% | $79.11 |
| Earnings Power Value | 10% | $75.03 |
| Weighted Average | 100% | $729.00 |
Based on our comprehensive valuation analysis, Andrews Sykes Group PLC's weighted average intrinsic value is $729.00, which is approximately 38.2% above the current market price of $527.50.
Key investment considerations:
Given these factors, we believe Andrews Sykes Group PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.