As of June 22, 2025, Ergomed PLC's estimated intrinsic value ranges from $366.97 to $1027.94 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1027.94 | -23.6% |
| Discounted Cash Flow (5Y) | $717.20 | -46.7% |
| Dividend Discount Model (Multi-Stage) | $618.21 | -54.1% |
| Dividend Discount Model (Stable) | $366.97 | -72.7% |
| Earnings Power Value | $461.57 | -65.7% |
Is Ergomed PLC (ERGO.L) undervalued or overvalued?
With the current market price at $1346.00, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Ergomed 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 | 0.85 | 0.96 |
| Cost of equity | 9.1% | 11.7% |
| Cost of debt | 4.6% | 8.6% |
| Tax rate | 14.6% | 16.6% |
| Debt/Equity ratio | 0 | 0 |
| After-tax WACC | 9.0% | 11.7% |
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 | $717 | $343M | 74.3% |
| 10-Year Growth | $1,028 | $502M | 58.0% |
| 5-Year EBITDA | $1,254 | $617M | 85.7% |
| 10-Year EBITDA | $1,497 | $741M | 71.5% |
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 | $22M |
| Discount Rate (WACC) | 11.7% - 9.0% |
| Enterprise Value | $186M - $240M |
| Net Debt | $(23)M |
| Equity Value | $209M - $263M |
| Outstanding Shares | 1M |
| Fair Value | $409 - $514 |
| Selected Fair Value | $461.57 |
| Metric | Value |
|---|---|
| Market Capitalization | $687M |
| Enterprise Value | $664M |
| Trailing P/E | 45.81 |
| Forward P/E | 36.64 |
| Trailing EV/EBITDA | 18.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.00 |
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% | $308.38 |
| Discounted Cash Flow (5Y) | 25% | $179.30 |
| Dividend Discount Model (Multi-Stage) | 20% | $123.64 |
| Dividend Discount Model (Stable) | 15% | $55.05 |
| Earnings Power Value | 10% | $46.16 |
| Weighted Average | 100% | $712.53 |
Based on our comprehensive valuation analysis, Ergomed PLC's weighted average intrinsic value is $712.53, which is approximately 47.1% below the current market price of $1346.00.
Key investment considerations:
Given these factors, we believe Ergomed PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.