As of June 18, 2025, BB Healthcare Trust PLC's estimated intrinsic value ranges from $37.62 to $623.95 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $623.95 | +415.7% |
| Discounted Cash Flow (5Y) | $594.68 | +391.5% |
| Dividend Discount Model (Multi-Stage) | $201.70 | +66.7% |
| Dividend Discount Model (Stable) | $217.21 | +79.5% |
| Earnings Power Value | $37.62 | -68.9% |
Is BB Healthcare Trust PLC (BBH.L) undervalued or overvalued?
With the current market price at $121.00, 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 BB Healthcare 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 | 1.5 | 1.93 |
| Cost of equity | 13.0% | 18.5% |
| Cost of debt | 4.6% | 4.6% |
| Tax rate | 0.3% | 0.5% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.8% | 11.5% |
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 | $595 | $868M | 62.5% |
| 10-Year Growth | $624 | $924M | 40.5% |
| 5-Year EBITDA | $421 | $534M | 39.1% |
| 10-Year EBITDA | $504 | $694M | 20.8% |
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 | $(20)M |
| Discount Rate (WACC) | 11.5% - 8.8% |
| Enterprise Value | $(175)M - $(229)M |
| Net Debt | $(274)M |
| Equity Value | $99M - $45M |
| Outstanding Shares | 2M |
| Fair Value | $52 - $23 |
| Selected Fair Value | $37.62 |
| Metric | Value |
|---|---|
| Market Capitalization | $232M |
| Enterprise Value | $-42M |
| Trailing P/E | 3.15 |
| Forward P/E | 3.02 |
| Trailing EV/EBITDA | 4.00 |
| Current Dividend Yield | 1069.26% |
| Dividend Growth Rate (5Y) | 3.29% |
| Debt-to-Equity Ratio | 0.81 |
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% | $187.18 |
| Discounted Cash Flow (5Y) | 25% | $148.67 |
| Dividend Discount Model (Multi-Stage) | 20% | $40.34 |
| Dividend Discount Model (Stable) | 15% | $32.58 |
| Earnings Power Value | 10% | $3.76 |
| Weighted Average | 100% | $412.54 |
Based on our comprehensive valuation analysis, BB Healthcare Trust PLC's weighted average intrinsic value is $412.54, which is approximately 240.9% above the current market price of $121.00.
Key investment considerations:
Given these factors, we believe BB Healthcare Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.