As of June 12, 2025, Brooks Macdonald Group PLC's estimated intrinsic value ranges from $839.41 to $2183.61 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $863.44 | -47.7% |
| Discounted Cash Flow (5Y) | $839.41 | -49.1% |
| Dividend Discount Model (Multi-Stage) | $871.77 | -47.2% |
| Dividend Discount Model (Stable) | $2183.61 | +32.3% |
| Earnings Power Value | $1970.57 | +19.4% |
Is Brooks Macdonald Group PLC (BRK.L) undervalued or overvalued?
With the current market price at $1650.00, 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 Brooks Macdonald 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 | 0.69 | 0.79 |
| Cost of equity | 8.1% | 10.5% |
| Cost of debt | 4.6% | 4.6% |
| Tax rate | 21.3% | 27.5% |
| Debt/Equity ratio | 0.02 | 0.02 |
| After-tax WACC | 8.0% | 10.4% |
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 | $839 | $100M | 78.5% |
| 10-Year Growth | $863 | $103M | 59.4% |
| 5-Year EBITDA | $663 | $73M | 70.7% |
| 10-Year EBITDA | $719 | $82M | 48.6% |
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 | $24M |
| Discount Rate (WACC) | 10.4% - 8.0% |
| Enterprise Value | $235M - $304M |
| Net Debt | $(26)M |
| Equity Value | $261M - $331M |
| Outstanding Shares | 0M |
| Fair Value | $1,739 - $2,202 |
| Selected Fair Value | $1970.57 |
| Metric | Value |
|---|---|
| Market Capitalization | $248M |
| Enterprise Value | $221M |
| Trailing P/E | 12.74 |
| Forward P/E | 28.28 |
| Trailing EV/EBITDA | 5.85 |
| Current Dividend Yield | 510.75% |
| Dividend Growth Rate (5Y) | 12.02% |
| Debt-to-Equity Ratio | 0.02 |
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% | $259.03 |
| Discounted Cash Flow (5Y) | 25% | $209.85 |
| Dividend Discount Model (Multi-Stage) | 20% | $174.35 |
| Dividend Discount Model (Stable) | 15% | $327.54 |
| Earnings Power Value | 10% | $197.06 |
| Weighted Average | 100% | $1167.84 |
Based on our comprehensive valuation analysis, Brooks Macdonald Group PLC's weighted average intrinsic value is $1167.84, which is approximately 29.2% below the current market price of $1650.00.
Key investment considerations:
Given these factors, we believe Brooks Macdonald Group PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.