As of June 12, 2025, Fuller Smith & Turner PLC's estimated intrinsic value ranges from $248.96 to $1015.86 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $745.75 | +21.5% |
| Discounted Cash Flow (5Y) | $486.95 | -20.7% |
| Dividend Discount Model (Multi-Stage) | $248.96 | -59.5% |
| Dividend Discount Model (Stable) | $555.34 | -9.6% |
| Earnings Power Value | $1015.86 | +65.4% |
Is Fuller Smith & Turner PLC (FSTA.L) undervalued or overvalued?
With the current market price at $614.00, 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 Fuller Smith & Turner 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 | 0.71 | 0.8 |
| Cost of equity | 8.2% | 10.6% |
| Cost of debt | 4.0% | 5.2% |
| Tax rate | 31.4% | 37.4% |
| Debt/Equity ratio | 0.63 | 0.63 |
| After-tax WACC | 6.1% | 7.8% |
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 | $487 | $460M | 86.0% |
| 10-Year Growth | $746 | $599M | 73.6% |
| 5-Year EBITDA | $501 | $468M | 86.3% |
| 10-Year EBITDA | $684 | $566M | 72.0% |
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 | $51M |
| Discount Rate (WACC) | 7.8% - 6.1% |
| Enterprise Value | $655M - $832M |
| Net Debt | $199M |
| Equity Value | $456M - $633M |
| Outstanding Shares | 1M |
| Fair Value | $851 - $1,181 |
| Selected Fair Value | $1015.86 |
| Metric | Value |
|---|---|
| Market Capitalization | $329M |
| Enterprise Value | $528M |
| Trailing P/E | 16.30 |
| Forward P/E | 34.90 |
| Trailing EV/EBITDA | 6.55 |
| Current Dividend Yield | 310.85% |
| Dividend Growth Rate (5Y) | -40.50% |
| Debt-to-Equity Ratio | 0.63 |
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% | $223.72 |
| Discounted Cash Flow (5Y) | 25% | $121.74 |
| Dividend Discount Model (Multi-Stage) | 20% | $49.79 |
| Dividend Discount Model (Stable) | 15% | $83.30 |
| Earnings Power Value | 10% | $101.59 |
| Weighted Average | 100% | $580.14 |
Based on our comprehensive valuation analysis, Fuller Smith & Turner PLC's weighted average intrinsic value is $580.14, which is approximately 5.5% below the current market price of $614.00.
Key investment considerations:
Given these factors, we believe Fuller Smith & Turner PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.