As of December 15, 2025, Bunzl plc's estimated intrinsic value ranges from $1382.67 to $5828.77 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2136.67 | -0.6% |
| Discounted Cash Flow (5Y) | $2014.23 | -6.3% |
| Dividend Discount Model (Multi-Stage) | $1382.67 | -35.7% |
| Dividend Discount Model (Stable) | $1394.36 | -35.1% |
| Earnings Power Value | $5828.77 | +171.1% |
Is Bunzl plc (BNZL.L) undervalued or overvalued?
With the current market price at $2150.00, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Bunzl 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 | 1.17 |
| Cost of equity | 10.0% | 13.1% |
| Cost of debt | 4.0% | 5.5% |
| Tax rate | 23.9% | 24.9% |
| Debt/Equity ratio | 0.53 | 0.53 |
| After-tax WACC | 7.6% | 10.0% |
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 | $2,014 | $8,769M | 73.5% |
| 10-Year Growth | $2,137 | $9,166M | 53.1% |
| 5-Year EBITDA | $1,480 | $7,039M | 66.9% |
| 10-Year EBITDA | $1,724 | $7,831M | 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 | $1,818M |
| Discount Rate (WACC) | 10.0% - 7.6% |
| Enterprise Value | $18,194M - $24,047M |
| Net Debt | $2,248M |
| Equity Value | $15,947M - $21,799M |
| Outstanding Shares | 3M |
| Fair Value | $4,925 - $6,733 |
| Selected Fair Value | $5828.77 |
| Metric | Value |
|---|---|
| Market Capitalization | $6961M |
| Enterprise Value | $9209M |
| Trailing P/E | 14.40 |
| Forward P/E | 13.61 |
| Trailing EV/EBITDA | 7.50 |
| Current Dividend Yield | 336.57% |
| Dividend Growth Rate (5Y) | 7.45% |
| Debt-to-Equity Ratio | 0.53 |
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% | $641.00 |
| Discounted Cash Flow (5Y) | 25% | $503.56 |
| Dividend Discount Model (Multi-Stage) | 20% | $276.53 |
| Dividend Discount Model (Stable) | 15% | $209.15 |
| Earnings Power Value | 10% | $582.88 |
| Weighted Average | 100% | $2213.12 |
Based on our comprehensive valuation analysis, Bunzl plc's intrinsic value is $2213.12, which is approximately 2.9% above the current market price of $2150.00.
Key investment considerations:
Given these factors, we believe Bunzl plc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.