As of May 23, 2025, Clipper Logistics PLC's estimated intrinsic value ranges from $156.91 to $1369.18 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1369.18 | +63.6% |
| Discounted Cash Flow (5Y) | $894.18 | +6.8% |
| Dividend Discount Model (Multi-Stage) | $762.03 | -9.0% |
| Dividend Discount Model (Stable) | $585.11 | -30.1% |
| Earnings Power Value | $156.91 | -81.3% |
Is Clipper Logistics PLC (CLG.L) undervalued or overvalued?
With the current market price at $837.00, 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 Clipper Logistics 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 | 0.99 | 1.04 |
| Cost of equity | 8.2% | 10.6% |
| Cost of debt | 4.0% | 4.7% |
| Tax rate | 20.1% | 20.6% |
| Debt/Equity ratio | 0.27 | 0.27 |
| After-tax WACC | 7.1% | 9.1% |
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 | $894 | $1,178M | 82.1% |
| 10-Year Growth | $1,369 | $1,687M | 68.5% |
| 5-Year EBITDA | $366 | $611M | 65.6% |
| 10-Year EBITDA | $709 | $980M | 45.8% |
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 | $31M |
| Discount Rate (WACC) | 9.1% - 7.1% |
| Enterprise Value | $341M - $434M |
| Net Debt | $220M |
| Equity Value | $122M - $215M |
| Outstanding Shares | 1M |
| Fair Value | $113 - $200 |
| Selected Fair Value | $156.91 |
| Metric | Value |
|---|---|
| Market Capitalization | $897M |
| Enterprise Value | $1117M |
| Trailing P/E | 21.09 |
| Forward P/E | 28.84 |
| Trailing EV/EBITDA | 4.70 |
| Current Dividend Yield | 236.18% |
| Dividend Growth Rate (5Y) | 12.82% |
| Debt-to-Equity Ratio | 0.27 |
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% | $410.75 |
| Discounted Cash Flow (5Y) | 25% | $223.55 |
| Dividend Discount Model (Multi-Stage) | 20% | $152.41 |
| Dividend Discount Model (Stable) | 15% | $87.77 |
| Earnings Power Value | 10% | $15.69 |
| Weighted Average | 100% | $890.16 |
Based on our comprehensive valuation analysis, Clipper Logistics PLC's weighted average intrinsic value is $890.16, which is approximately 6.4% above the current market price of $837.00.
Key investment considerations:
Given these factors, we believe Clipper Logistics PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.