As of June 13, 2025, Edgewell Personal Care Co's estimated intrinsic value ranges from $16.08 to $61.20 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $61.20 | +141.4% |
| Discounted Cash Flow (5Y) | $54.30 | +114.2% |
| Dividend Discount Model (Multi-Stage) | $18.19 | -28.3% |
| Dividend Discount Model (Stable) | $16.08 | -36.6% |
| Earnings Power Value | $41.18 | +62.4% |
Is Edgewell Personal Care Co (EPC) undervalued or overvalued?
With the current market price at $25.35, 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 Edgewell Personal Care Co'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.01 | 1.25 |
| Cost of equity | 8.5% | 11.9% |
| Cost of debt | 5.0% | 5.6% |
| Tax rate | 19.9% | 20.9% |
| Debt/Equity ratio | 1.02 | 1.02 |
| After-tax WACC | 6.3% | 8.1% |
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 | $54 | $3,844M | 74.5% |
| 10-Year Growth | $61 | $4,168M | 55.0% |
| 5-Year EBITDA | $29 | $2,638M | 62.8% |
| 10-Year EBITDA | $41 | $3,203M | 41.5% |
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 | $228M |
| Discount Rate (WACC) | 8.1% - 6.3% |
| Enterprise Value | $2,810M - $3,644M |
| Net Debt | $1,290M |
| Equity Value | $1,520M - $2,354M |
| Outstanding Shares | 47M |
| Fair Value | $32 - $50 |
| Selected Fair Value | $41.18 |
| Metric | Value |
|---|---|
| Market Capitalization | $1192M |
| Enterprise Value | $2482M |
| Trailing P/E | 14.08 |
| Forward P/E | 12.21 |
| Trailing EV/EBITDA | 6.30 |
| Current Dividend Yield | 236.52% |
| Dividend Growth Rate (5Y) | -20.86% |
| Debt-to-Equity Ratio | 1.02 |
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% | $18.36 |
| Discounted Cash Flow (5Y) | 25% | $13.58 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.64 |
| Dividend Discount Model (Stable) | 15% | $2.41 |
| Earnings Power Value | 10% | $4.12 |
| Weighted Average | 100% | $42.10 |
Based on our comprehensive valuation analysis, Edgewell Personal Care Co's weighted average intrinsic value is $42.10, which is approximately 66.1% above the current market price of $25.35.
Key investment considerations:
Given these factors, we believe Edgewell Personal Care Co is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.