As of May 23, 2025, Blancco Technology Group PLC's estimated intrinsic value ranges from $21.66 to $108.30 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $43.41 | -80.7% |
| Discounted Cash Flow (5Y) | $21.66 | -90.4% |
| Dividend Discount Model (Multi-Stage) | $54.03 | -76.0% |
| Dividend Discount Model (Stable) | $108.30 | -51.9% |
| Earnings Power Value | $102.83 | -54.3% |
Is Blancco Technology Group PLC (BLTG.L) undervalued or overvalued?
With the current market price at $225.00, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Blancco Technology 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 | 4.4% | 4.9% |
| Equity market risk premium | 6.4% | 7.4% |
| Adjusted beta | 0.38 | 0.46 |
| Cost of equity | 6.9% | 8.8% |
| Cost of debt | 5.2% | 6.1% |
| Tax rate | 16.5% | 21.7% |
| Debt/Equity ratio | 0.03 | 0.03 |
| After-tax WACC | 6.8% | 8.7% |
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 | $22 | $8M | 81.3% |
| 10-Year Growth | $43 | $25M | 79.5% |
| 5-Year EBITDA | $147 | $103M | 98.5% |
| 10-Year EBITDA | $158 | $111M | 95.4% |
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 | $5M |
| Discount Rate (WACC) | 8.7% - 6.8% |
| Enterprise Value | $61M - $78M |
| Net Debt | $(8)M |
| Equity Value | $69M - $86M |
| Outstanding Shares | 1M |
| Fair Value | $92 - $114 |
| Selected Fair Value | $102.83 |
| Metric | Value |
|---|---|
| Market Capitalization | $170M |
| Enterprise Value | $162M |
| Trailing P/E | 61.80 |
| Forward P/E | 105.23 |
| Trailing EV/EBITDA | 14.70 |
| Current Dividend Yield | 88.39% |
| Dividend Growth Rate (5Y) | 1.46% |
| Debt-to-Equity Ratio | 0.03 |
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% | $13.02 |
| Discounted Cash Flow (5Y) | 25% | $5.42 |
| Dividend Discount Model (Multi-Stage) | 20% | $10.81 |
| Dividend Discount Model (Stable) | 15% | $16.24 |
| Earnings Power Value | 10% | $10.28 |
| Weighted Average | 100% | $55.77 |
Based on our comprehensive valuation analysis, Blancco Technology Group PLC's weighted average intrinsic value is $55.77, which is approximately 75.2% below the current market price of $225.00.
Key investment considerations:
Given these factors, we believe Blancco Technology Group PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.