As of December 15, 2025, Foresight Solar Fund Ltd's estimated intrinsic value ranges from $7.40 to $306.75 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $180.56 | +189.4% |
| Discounted Cash Flow (5Y) | $40.72 | -34.7% |
| Dividend Discount Model (Multi-Stage) | $137.15 | +119.8% |
| Dividend Discount Model (Stable) | $7.40 | -88.1% |
| Earnings Power Value | $306.75 | +391.6% |
Is Foresight Solar Fund Ltd (FSFL.L) undervalued or overvalued?
With the current market price at $62.40, 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 Foresight Solar Fund Ltd'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 | 1.25 | 1.33 |
| Cost of equity | 11.5% | 14.3% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 7.8% | 9.2% |
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 | $41 | $234M | 81.2% |
| 10-Year Growth | $181 | $1,050M | 46.2% |
| 5-Year EBITDA | $101 | $583M | 27.2% |
| 10-Year EBITDA | $119 | $691M | 18.4% |
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 | $150M |
| Discount Rate (WACC) | 9.2% - 7.8% |
| Enterprise Value | $1,639M - $1,932M |
| Net Debt | $(3)M |
| Equity Value | $1,642M - $1,935M |
| Outstanding Shares | 6M |
| Fair Value | $282 - $332 |
| Selected Fair Value | $306.75 |
| Metric | Value |
|---|---|
| Market Capitalization | $364M |
| Enterprise Value | $361M |
| Trailing P/E | 79.53 |
| Forward P/E | 13.13 |
| Trailing EV/EBITDA | 6.00 |
| Current Dividend Yield | 1242.39% |
| Dividend Growth Rate (5Y) | 3.71% |
| 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% | $54.17 |
| Discounted Cash Flow (5Y) | 25% | $10.18 |
| Dividend Discount Model (Multi-Stage) | 20% | $27.43 |
| Dividend Discount Model (Stable) | 15% | $1.11 |
| Earnings Power Value | 10% | $30.68 |
| Weighted Average | 100% | $123.56 |
Based on our comprehensive valuation analysis, Foresight Solar Fund Ltd's intrinsic value is $123.56, which is approximately 98.0% above the current market price of $62.40.
Key investment considerations:
Given these factors, we believe Foresight Solar Fund Ltd is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.