As of June 16, 2025, Bridgepoint Group PLC's estimated intrinsic value ranges from $2.90 to $125.61 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $125.61 | -55.6% |
| Discounted Cash Flow (5Y) | $48.94 | -82.7% |
| Dividend Discount Model (Multi-Stage) | $121.11 | -57.1% |
| Dividend Discount Model (Stable) | $60.98 | -78.4% |
| Earnings Power Value | $2.90 | -99.0% |
Is Bridgepoint Group PLC (BPT.L) undervalued or overvalued?
With the current market price at $282.60, 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 Bridgepoint 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 | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.49 | 1.82 |
| Cost of equity | 12.9% | 17.7% |
| Cost of debt | 4.0% | 4.7% |
| Tax rate | 6.7% | 10.4% |
| Debt/Equity ratio | 0.94 | 0.94 |
| After-tax WACC | 8.5% | 11.1% |
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 | $49 | $2,550M | 77.1% |
| 10-Year Growth | $126 | $3,208M | 61.8% |
| 5-Year EBITDA | $(1,234) | $2,102M | 72.2% |
| 10-Year EBITDA | $70 | $2,733M | 55.2% |
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 | $207M |
| Discount Rate (WACC) | 11.1% - 8.5% |
| Enterprise Value | $1,860M - $2,450M |
| Net Debt | $2,130M |
| Equity Value | $(270)M - $320M |
| Outstanding Shares | 9M |
| Fair Value | $(32) - $37 |
| Selected Fair Value | $2.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $2424M |
| Enterprise Value | $4554M |
| Trailing P/E | 37.41 |
| Forward P/E | 24.23 |
| Trailing EV/EBITDA | 11.20 |
| Current Dividend Yield | 330.41% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.94 |
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% | $37.68 |
| Discounted Cash Flow (5Y) | 25% | $12.23 |
| Dividend Discount Model (Multi-Stage) | 20% | $24.22 |
| Dividend Discount Model (Stable) | 15% | $9.15 |
| Earnings Power Value | 10% | $0.29 |
| Weighted Average | 100% | $83.58 |
Based on our comprehensive valuation analysis, Bridgepoint Group PLC's weighted average intrinsic value is $83.58, which is approximately 70.4% below the current market price of $282.60.
Key investment considerations:
Given these factors, we believe Bridgepoint Group PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.