As of April 4, 2026, Fidelity European Values PLC's estimated intrinsic value ranges from $345.73 to $830.21 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $830.21 | +114.2% |
| Discounted Cash Flow (5Y) | $770.99 | +99.0% |
| Dividend Discount Model (Multi-Stage) | $345.73 | -10.8% |
| Dividend Discount Model (Stable) | $526.15 | +35.8% |
| Earnings Power Value | $465.34 | +20.1% |
Is Fidelity European Values PLC (FEV.L) undervalued or overvalued?
With the current market price at $387.50, 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 Fidelity European Values 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 | 1.35 | 1.52 |
| Cost of equity | 10.1% | 13.6% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 1.2% | 1.2% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 7.0% | 9.0% |
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 | $1,061 | $4,263M | 69.4% |
| 10-Year Growth | $1,143 | $4,592M | 49.6% |
| 5-Year EBITDA | $486 | $2,696M | 51.5% |
| 10-Year EBITDA | $611 | $3,385M | 31.6% |
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 | $203M |
| Discount Rate (WACC) | 9.0% - 7.0% |
| Enterprise Value | $2,255M - $2,882M |
| Net Debt | $(11)M |
| Equity Value | $2,267M - $2,893M |
| Outstanding Shares | 4M |
| Fair Value | $563 - $718 |
| Selected Fair Value | $465.34 |
| Metric | Value |
|---|---|
| Market Capitalization | $2148M |
| Enterprise Value | $2148M |
| Trailing P/E | 0.00 |
| Forward P/E | 7.28 |
| Trailing EV/EBITDA | 6.20 |
| Current Dividend Yield | 227.42% |
| Dividend Growth Rate (5Y) | 5.97% |
| Debt-to-Equity Ratio | 0.91 |
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% | $249.06 |
| Discounted Cash Flow (5Y) | 25% | $192.75 |
| Dividend Discount Model (Multi-Stage) | 20% | $69.15 |
| Dividend Discount Model (Stable) | 15% | $78.92 |
| Earnings Power Value | 10% | $46.53 |
| Weighted Average | 100% | $636.41 |
Based on our comprehensive valuation analysis, Fidelity European Values PLC's intrinsic value is $636.41, which is approximately 64.2% above the current market price of $387.50.
Key investment considerations:
Given these factors, we believe Fidelity European Values PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.