As of May 22, 2025, Electra Private Equity PLC's estimated intrinsic value ranges from $12.56 to $300.22 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $33.48 | -43.8% |
| Discounted Cash Flow (5Y) | $32.65 | -45.2% |
| Dividend Discount Model (Multi-Stage) | $12.56 | -78.9% |
| Dividend Discount Model (Stable) | $119.51 | +100.5% |
| Earnings Power Value | $300.22 | +403.7% |
Is Electra Private Equity PLC (ELTA.L) undervalued or overvalued?
With the current market price at $59.60, 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 Electra Private Equity 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 | 1.39 | 1.64 |
| Cost of equity | 10.4% | 14.4% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 0.2% | 1.1% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 7.7% | 9.6% |
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 | $33 | $14M | 66.9% |
| 10-Year Growth | $33 | $14M | 48.6% |
| 5-Year EBITDA | $18 | $7M | 36.6% |
| 10-Year EBITDA | $22 | $9M | 21.2% |
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 | $11M |
| Discount Rate (WACC) | 9.6% - 7.7% |
| Enterprise Value | $118M - $149M |
| Net Debt | $(1)M |
| Equity Value | $119M - $149M |
| Outstanding Shares | 0M |
| Fair Value | $266 - $334 |
| Selected Fair Value | $300.22 |
| Metric | Value |
|---|---|
| Market Capitalization | $27M |
| Enterprise Value | $26M |
| Trailing P/E | 4.36 |
| Forward P/E | 31.03 |
| Trailing EV/EBITDA | 4.35 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -29.95% |
| Debt-to-Equity Ratio | 1.10 |
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% | $10.04 |
| Discounted Cash Flow (5Y) | 25% | $8.16 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.51 |
| Dividend Discount Model (Stable) | 15% | $17.93 |
| Earnings Power Value | 10% | $30.02 |
| Weighted Average | 100% | $68.67 |
Based on our comprehensive valuation analysis, Electra Private Equity PLC's weighted average intrinsic value is $68.67, which is approximately 15.2% above the current market price of $59.60.
Key investment considerations:
Given these factors, we believe Electra Private Equity PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.