As of May 23, 2025, Henry Boot PLC's estimated intrinsic value ranges from $165.31 to $361.33 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $254.06 | +12.9% |
| Discounted Cash Flow (5Y) | $185.16 | -17.7% |
| Dividend Discount Model (Multi-Stage) | $361.33 | +60.6% |
| Dividend Discount Model (Stable) | $165.31 | -26.5% |
| Earnings Power Value | $204.96 | -8.9% |
Is Henry Boot PLC (BOOT.L) undervalued or overvalued?
With the current market price at $225.00, 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 Henry Boot 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 | 0.49 | 0.78 |
| Cost of equity | 6.9% | 10.4% |
| Cost of debt | 5.5% | 7.6% |
| Tax rate | 18.6% | 19.6% |
| Debt/Equity ratio | 0.31 | 0.31 |
| After-tax WACC | 6.3% | 9.4% |
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 | $185 | $351M | 75.6% |
| 10-Year Growth | $254 | $443M | 61.8% |
| 5-Year EBITDA | $200 | $372M | 77.0% |
| 10-Year EBITDA | $220 | $398M | 57.4% |
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 | $29M |
| Discount Rate (WACC) | 9.4% - 6.3% |
| Enterprise Value | $304M - $452M |
| Net Debt | $104M |
| Equity Value | $200M - $348M |
| Outstanding Shares | 1M |
| Fair Value | $150 - $260 |
| Selected Fair Value | $204.96 |
| Metric | Value |
|---|---|
| Market Capitalization | $301M |
| Enterprise Value | $405M |
| Trailing P/E | 26.55 |
| Forward P/E | 10.13 |
| Trailing EV/EBITDA | 8.35 |
| Current Dividend Yield | 330.84% |
| Dividend Growth Rate (5Y) | -7.41% |
| Debt-to-Equity Ratio | 0.31 |
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% | $76.22 |
| Discounted Cash Flow (5Y) | 25% | $46.29 |
| Dividend Discount Model (Multi-Stage) | 20% | $72.27 |
| Dividend Discount Model (Stable) | 15% | $24.80 |
| Earnings Power Value | 10% | $20.50 |
| Weighted Average | 100% | $240.07 |
Based on our comprehensive valuation analysis, Henry Boot PLC's weighted average intrinsic value is $240.07, which is approximately 6.7% above the current market price of $225.00.
Key investment considerations:
Given these factors, we believe Henry Boot PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.