As of May 23, 2025, BMO Private Equity Trust PLC's estimated intrinsic value ranges from $942.91 to $2792.60 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2339.52 | +493.8% |
| Discounted Cash Flow (5Y) | $1966.39 | +399.1% |
| Dividend Discount Model (Multi-Stage) | $1344.21 | +241.2% |
| Dividend Discount Model (Stable) | $2792.60 | +608.8% |
| Earnings Power Value | $942.91 | +139.3% |
Is BMO Private Equity Trust PLC (BPET.L) undervalued or overvalued?
With the current market price at $394.00, 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 BMO Private Equity 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.87 | 1.08 |
| Cost of equity | 7.6% | 10.8% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| After-tax WACC | 7.1% | 10.1% |
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 | $1,966 | $1,476M | 67.9% |
| 10-Year Growth | $2,340 | $1,755M | 49.8% |
| 5-Year EBITDA | $1,313 | $987M | 52.0% |
| 10-Year EBITDA | $1,770 | $1,329M | 33.6% |
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 | $59M |
| Discount Rate (WACC) | 10.1% - 7.1% |
| Enterprise Value | $588M - $831M |
| Net Debt | $3M |
| Equity Value | $585M - $827M |
| Outstanding Shares | 1M |
| Fair Value | $781 - $1,105 |
| Selected Fair Value | $942.91 |
| Metric | Value |
|---|---|
| Market Capitalization | $295M |
| Enterprise Value | $298M |
| Trailing P/E | 1.42 |
| Forward P/E | 2.75 |
| Trailing EV/EBITDA | 5.15 |
| Current Dividend Yield | 828.03% |
| Dividend Growth Rate (5Y) | 6.55% |
| Debt-to-Equity Ratio | 0.12 |
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% | $701.86 |
| Discounted Cash Flow (5Y) | 25% | $491.60 |
| Dividend Discount Model (Multi-Stage) | 20% | $268.84 |
| Dividend Discount Model (Stable) | 15% | $418.89 |
| Earnings Power Value | 10% | $94.29 |
| Weighted Average | 100% | $1975.48 |
Based on our comprehensive valuation analysis, BMO Private Equity Trust PLC's weighted average intrinsic value is $1975.48, which is approximately 401.4% above the current market price of $394.00.
Key investment considerations:
Given these factors, we believe BMO Private Equity Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.