As of May 23, 2025, DX (Group) PLC's estimated intrinsic value ranges from $42.77 to $560.21 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $45.57 | -3.9% |
| Discounted Cash Flow (5Y) | $42.77 | -9.8% |
| Dividend Discount Model (Multi-Stage) | $48.71 | +2.8% |
| Dividend Discount Model (Stable) | $99.12 | +109.1% |
| Earnings Power Value | $560.21 | +1081.9% |
Is DX (Group) PLC (DX.L) undervalued or overvalued?
With the current market price at $47.40, 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 DX (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 | 0.44 | 0.63 |
| Cost of equity | 6.6% | 9.4% |
| Cost of debt | 5.2% | 37.7% |
| Tax rate | 30.9% | 41.2% |
| Debt/Equity ratio | 0.41 | 0.41 |
| After-tax WACC | 5.7% | 13.1% |
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 | $43 | $339M | 75.0% |
| 10-Year Growth | $46 | $356M | 57.1% |
| 5-Year EBITDA | $30 | $259M | 67.3% |
| 10-Year EBITDA | $36 | $296M | 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 | $277M |
| Discount Rate (WACC) | 13.1% - 5.7% |
| Enterprise Value | $2,107M - $4,817M |
| Net Debt | $80M |
| Equity Value | $2,027M - $4,736M |
| Outstanding Shares | 6M |
| Fair Value | $336 - $785 |
| Selected Fair Value | $560.21 |
| Metric | Value |
|---|---|
| Market Capitalization | $286M |
| Enterprise Value | $367M |
| Trailing P/E | 12.55 |
| Forward P/E | 16.80 |
| Trailing EV/EBITDA | 6.05 |
| Current Dividend Yield | 104.85% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.41 |
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% | $13.67 |
| Discounted Cash Flow (5Y) | 25% | $10.69 |
| Dividend Discount Model (Multi-Stage) | 20% | $9.74 |
| Dividend Discount Model (Stable) | 15% | $14.87 |
| Earnings Power Value | 10% | $56.02 |
| Weighted Average | 100% | $105.00 |
Based on our comprehensive valuation analysis, DX (Group) PLC's weighted average intrinsic value is $105.00, which is approximately 121.5% above the current market price of $47.40.
Key investment considerations:
Given these factors, we believe DX (Group) PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.