As of June 14, 2025, CML Microsystems Plc's estimated intrinsic value ranges from $139.62 to $473.46 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $299.99 | +25.0% |
| Discounted Cash Flow (5Y) | $139.62 | -41.8% |
| Dividend Discount Model (Multi-Stage) | $473.46 | +97.3% |
| Dividend Discount Model (Stable) | $238.19 | -0.8% |
| Earnings Power Value | $192.81 | -19.7% |
Is CML Microsystems Plc (CML.L) undervalued or overvalued?
With the current market price at $240.00, the stock appears to be moderately 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 CML Microsystems 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 | 0.47 | 0.77 |
| Cost of equity | 6.8% | 10.4% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 17.3% | 22.3% |
| Debt/Equity ratio | 0.02 | 0.02 |
| After-tax WACC | 6.8% | 10.2% |
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 | $140 | $15M | 94.7% |
| 10-Year Growth | $300 | $41M | 79.3% |
| 5-Year EBITDA | $469 | $68M | 98.8% |
| 10-Year EBITDA | $558 | $82M | 89.7% |
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 | $2M |
| Discount Rate (WACC) | 10.2% - 6.8% |
| Enterprise Value | $19M - $29M |
| Net Debt | $(7)M |
| Equity Value | $26M - $36M |
| Outstanding Shares | 0M |
| Fair Value | $162 - $223 |
| Selected Fair Value | $192.81 |
| Metric | Value |
|---|---|
| Market Capitalization | $38M |
| Enterprise Value | $31M |
| Trailing P/E | 29.62 |
| Forward P/E | 15.02 |
| Trailing EV/EBITDA | 6.55 |
| Current Dividend Yield | 419.50% |
| Dividend Growth Rate (5Y) | 6.93% |
| 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% | $90.00 |
| Discounted Cash Flow (5Y) | 25% | $34.91 |
| Dividend Discount Model (Multi-Stage) | 20% | $94.69 |
| Dividend Discount Model (Stable) | 15% | $35.73 |
| Earnings Power Value | 10% | $19.28 |
| Weighted Average | 100% | $274.60 |
Based on our comprehensive valuation analysis, CML Microsystems Plc's weighted average intrinsic value is $274.60, which is approximately 14.4% above the current market price of $240.00.
Key investment considerations:
Given these factors, we believe CML Microsystems Plc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.