As of June 17, 2025, EP Global Opportunities Trust PLC's estimated intrinsic value ranges from $69.32 to $422.11 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $422.11 | +50.8% |
| Discounted Cash Flow (5Y) | $403.00 | +43.9% |
| Dividend Discount Model (Multi-Stage) | $185.80 | -33.6% |
| Dividend Discount Model (Stable) | $69.32 | -75.2% |
| Earnings Power Value | $331.31 | +18.3% |
Is EP Global Opportunities Trust PLC (EPG.L) undervalued or overvalued?
With the current market price at $280.00, 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 EP Global Opportunities Trust 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 | 1.12 | 1.71 |
| Cost of equity | 8.9% | 14.8% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 3.6% | 4.3% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.4% | 9.5% |
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 | $403 | $85M | 71.2% |
| 10-Year Growth | $422 | $90M | 51.9% |
| 5-Year EBITDA | $354 | $71M | 65.4% |
| 10-Year EBITDA | $384 | $79M | 45.2% |
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 | $5M |
| Discount Rate (WACC) | 9.5% - 6.4% |
| Enterprise Value | $51M - $77M |
| Net Debt | $(32)M |
| Equity Value | $83M - $109M |
| Outstanding Shares | 0M |
| Fair Value | $287 - $375 |
| Selected Fair Value | $331.31 |
| Metric | Value |
|---|---|
| Market Capitalization | $81M |
| Enterprise Value | $49M |
| Trailing P/E | 34.43 |
| Forward P/E | 14.70 |
| Trailing EV/EBITDA | 10.65 |
| Current Dividend Yield | 355.66% |
| Dividend Growth Rate (5Y) | 20.30% |
| Debt-to-Equity Ratio | 0.94 |
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% | $126.63 |
| Discounted Cash Flow (5Y) | 25% | $100.75 |
| Dividend Discount Model (Multi-Stage) | 20% | $37.16 |
| Dividend Discount Model (Stable) | 15% | $10.40 |
| Earnings Power Value | 10% | $33.13 |
| Weighted Average | 100% | $308.07 |
Based on our comprehensive valuation analysis, EP Global Opportunities Trust PLC's weighted average intrinsic value is $308.07, which is approximately 10.0% above the current market price of $280.00.
Key investment considerations:
Given these factors, we believe EP Global Opportunities Trust PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.