As of June 5, 2025, Bankers Investment Trust PLC's estimated intrinsic value ranges from $40.28 to $258.14 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $258.14 | +121.8% |
| Discounted Cash Flow (5Y) | $242.66 | +108.5% |
| Dividend Discount Model (Multi-Stage) | $164.99 | +41.7% |
| Dividend Discount Model (Stable) | $174.65 | +50.0% |
| Earnings Power Value | $40.28 | -65.4% |
Is Bankers Investment Trust PLC (BNKR.L) undervalued or overvalued?
With the current market price at $116.40, 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 Bankers Investment 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 | 0.96 | 1.02 |
| Cost of equity | 9.7% | 12.1% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 1.6% | 2.3% |
| Debt/Equity ratio | 0.1 | 0.1 |
| After-tax WACC | 9.2% | 11.4% |
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 | $243 | $2,623M | 62.0% |
| 10-Year Growth | $258 | $2,787M | 39.8% |
| 5-Year EBITDA | $280 | $3,019M | 67.0% |
| 10-Year EBITDA | $284 | $3,057M | 45.1% |
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 | $49M |
| Discount Rate (WACC) | 11.4% - 9.2% |
| Enterprise Value | $431M - $535M |
| Net Debt | $57M |
| Equity Value | $374M - $478M |
| Outstanding Shares | 11M |
| Fair Value | $35 - $45 |
| Selected Fair Value | $40.28 |
| Metric | Value |
|---|---|
| Market Capitalization | $1231M |
| Enterprise Value | $1288M |
| Trailing P/E | 5.35 |
| Forward P/E | 5.15 |
| Trailing EV/EBITDA | 12.50 |
| Current Dividend Yield | 262.65% |
| Dividend Growth Rate (5Y) | 4.37% |
| Debt-to-Equity Ratio | 0.10 |
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% | $77.44 |
| Discounted Cash Flow (5Y) | 25% | $60.66 |
| Dividend Discount Model (Multi-Stage) | 20% | $33.00 |
| Dividend Discount Model (Stable) | 15% | $26.20 |
| Earnings Power Value | 10% | $4.03 |
| Weighted Average | 100% | $201.33 |
Based on our comprehensive valuation analysis, Bankers Investment Trust PLC's weighted average intrinsic value is $201.33, which is approximately 73.0% above the current market price of $116.40.
Key investment considerations:
Given these factors, we believe Bankers Investment Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.