As of May 22, 2025, Allianz Technology Trust PLC's estimated intrinsic value ranges from $410.05 to $1409.97 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1120.38 | +183.3% |
| Discounted Cash Flow (5Y) | $967.65 | +144.7% |
| Dividend Discount Model (Multi-Stage) | $410.05 | +3.7% |
| Dividend Discount Model (Stable) | $1409.97 | +256.5% |
| Earnings Power Value | $947.57 | +139.6% |
Is Allianz Technology Trust PLC (ATT.L) undervalued or overvalued?
With the current market price at $395.50, 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 Allianz Technology 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.67 | 1.77 |
| Cost of equity | 11.8% | 15.2% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 0.3% | 0.3% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.4% | 10.1% |
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 | $823 | $3,190M | 65.7% |
| 10-Year Growth | $952 | $3,701M | 46.6% |
| 5-Year EBITDA | $661 | $2,210M | 50.4% |
| 10-Year EBITDA | $866 | $2,895M | 31.7% |
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 | $286M |
| Discount Rate (WACC) | 10.1% - 8.4% |
| Enterprise Value | $2,843M - $3,403M |
| Net Debt | $(46)M |
| Equity Value | $2,889M - $3,449M |
| Outstanding Shares | 4M |
| Fair Value | $734 - $877 |
| Selected Fair Value | $947.57 |
| Metric | Value |
|---|---|
| Market Capitalization | $1323M |
| Enterprise Value | $1323M |
| Trailing P/E | 0.00 |
| Forward P/E | 5.29 |
| Trailing EV/EBITDA | 6.10 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.11 |
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% | $336.11 |
| Discounted Cash Flow (5Y) | 25% | $241.91 |
| Dividend Discount Model (Multi-Stage) | 20% | $82.01 |
| Dividend Discount Model (Stable) | 15% | $211.50 |
| Earnings Power Value | 10% | $94.76 |
| Weighted Average | 100% | $966.29 |
Based on our comprehensive valuation analysis, Allianz Technology Trust PLC's weighted average intrinsic value is $966.29, which is approximately 144.3% above the current market price of $395.50.
Key investment considerations:
Given these factors, we believe Allianz Technology Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.