As of May 25, 2025, Dods Group PLC's estimated intrinsic value ranges from $81.67 to $173.97 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $173.97 | +157.7% |
| Discounted Cash Flow (5Y) | $92.10 | +36.4% |
| Dividend Discount Model (Multi-Stage) | $81.67 | +21.0% |
| Earnings Power Value | $126.15 | +86.9% |
Is Dods Group PLC (DODS.L) undervalued or overvalued?
With the current market price at $67.50, the stock appears to be significantly 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 Dods 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.83 | 1.12 |
| Cost of equity | 7.4% | 11.0% |
| Cost of debt | 7.0% | 7.0% |
| Tax rate | 3.3% | 4.5% |
| Debt/Equity ratio | 0.76 | 0.76 |
| 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 | $92 | $29M | 79.9% |
| 10-Year Growth | $174 | $49M | 65.8% |
| 5-Year EBITDA | $50 | $19M | 69.6% |
| 10-Year EBITDA | $101 | $31M | 46.8% |
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 | $3M |
| Discount Rate (WACC) | 9.1% - 7.1% |
| Enterprise Value | $33M - $42M |
| Net Debt | $8M |
| Equity Value | $25M - $35M |
| Outstanding Shares | 0M |
| Fair Value | $106 - $146 |
| Selected Fair Value | $126.15 |
| Metric | Value |
|---|---|
| Market Capitalization | $16M |
| Enterprise Value | $24M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 5.10 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.76 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $52.19 |
| Discounted Cash Flow (5Y) | 29% | $23.03 |
| Dividend Discount Model (Multi-Stage) | 24% | $16.33 |
| Earnings Power Value | 12% | $12.62 |
| Weighted Average | 100% | $122.55 |
Based on our comprehensive valuation analysis, Dods Group PLC's weighted average intrinsic value is $122.55, which is approximately 81.6% above the current market price of $67.50.
Key investment considerations:
Given these factors, we believe Dods Group PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.