What is BYOT.L's Intrinsic value?

Byotrol PLC (BYOT.L) Intrinsic Value Analysis

Executive Summary

As of June 18, 2025, Byotrol PLC's estimated intrinsic value ranges from $0.63 to $0.63 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.63 +533.5%

Is Byotrol PLC (BYOT.L) undervalued or overvalued?

With the current market price at $0.10, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Byotrol PLC's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

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 0.36 0.49
Cost of equity 6.1% 8.4%
Cost of debt 7.0% 89.2%
Tax rate 6.6% 7.6%
Debt/Equity ratio 1.72 1.72
After-tax WACC 6.4% 55.1%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $0M
Discount Rate (WACC) 55.1% - 6.4%
Enterprise Value $1M - $7M
Net Debt $0M
Equity Value $0M - $7M
Outstanding Shares 6M
Fair Value $0 - $1
Selected Fair Value $0.63

Key Financial Metrics

Metric Value
Market Capitalization $1M
Enterprise Value $1M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 8.60
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 1.72

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Earnings Power Value 100% $0.06
Weighted Average 100% $0.63

Investment Conclusion

Based on our comprehensive valuation analysis, Byotrol PLC's weighted average intrinsic value is $0.63, which is approximately 533.5% above the current market price of $0.10.

Key investment considerations:

  • Strong projected earnings growth (-37% to -24% margin)
  • Consistent cash flow generation

Given these factors, we believe Byotrol PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.