As of May 23, 2025, Ediston Property Investment Company PLC's estimated intrinsic value ranges from $36.51 to $109.32 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $52.64 | -23.5% |
| Discounted Cash Flow (5Y) | $48.59 | -29.4% |
| Dividend Discount Model (Multi-Stage) | $109.32 | +58.9% |
| Earnings Power Value | $36.51 | -46.9% |
Is Ediston Property Investment Company PLC (EPIC.L) undervalued or overvalued?
With the current market price at $68.80, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Ediston Property Investment Company 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 | 0.55 | 0.65 |
| Cost of equity | 7.3% | 9.6% |
| Cost of debt | 4.0% | 6.2% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.76 | 0.76 |
| After-tax WACC | 5.5% | 7.6% |
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 | $49 | $165M | 79.0% |
| 10-Year Growth | $53 | $174M | 63.9% |
| 5-Year EBITDA | $76 | $223M | 84.4% |
| 10-Year EBITDA | $75 | $221M | 71.6% |
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 | $9M |
| Discount Rate (WACC) | 7.6% - 5.5% |
| Enterprise Value | $118M - $162M |
| Net Debt | $63M |
| Equity Value | $55M - $99M |
| Outstanding Shares | 2M |
| Fair Value | $26 - $47 |
| Selected Fair Value | $36.51 |
| Metric | Value |
|---|---|
| Market Capitalization | $145M |
| Enterprise Value | $208M |
| Trailing P/E | 0.00 |
| Forward P/E | 7.47 |
| Trailing EV/EBITDA | 13.15 |
| Current Dividend Yield | 726.97% |
| Dividend Growth Rate (5Y) | -0.56% |
| 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% | $15.79 |
| Discounted Cash Flow (5Y) | 29% | $12.15 |
| Dividend Discount Model (Multi-Stage) | 24% | $21.86 |
| Earnings Power Value | 12% | $3.65 |
| Weighted Average | 100% | $62.89 |
Based on our comprehensive valuation analysis, Ediston Property Investment Company PLC's weighted average intrinsic value is $62.89, which is approximately 8.6% below the current market price of $68.80.
Key investment considerations:
Given these factors, we believe Ediston Property Investment Company PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.