As of June 17, 2025, Foresight VCT PLC's estimated intrinsic value ranges from $52.13 to $120.83 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $120.83 | +85.9% |
| Discounted Cash Flow (5Y) | $102.80 | +58.2% |
| Dividend Discount Model (Multi-Stage) | $57.32 | -11.8% |
| Dividend Discount Model (Stable) | $52.13 | -19.8% |
| Earnings Power Value | $75.31 | +15.9% |
Is Foresight VCT PLC (FTV.L) undervalued or overvalued?
With the current market price at $65.00, 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 VCT 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 | 0.89 | 0.93 |
| Cost of equity | 9.3% | 11.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.7% | 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 | $103 | $280M | 72.5% |
| 10-Year Growth | $121 | $339M | 56.0% |
| 5-Year EBITDA | $81 | $210M | 63.3% |
| 10-Year EBITDA | $101 | $274M | 45.5% |
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 | $14M |
| Discount Rate (WACC) | 7.8% - 6.7% |
| Enterprise Value | $176M - $205M |
| Net Debt | $(56)M |
| Equity Value | $232M - $261M |
| Outstanding Shares | 3M |
| Fair Value | $71 - $80 |
| Selected Fair Value | $75.31 |
| Metric | Value |
|---|---|
| Market Capitalization | $213M |
| Enterprise Value | $157M |
| Trailing P/E | 10.57 |
| Forward P/E | 12.48 |
| Trailing EV/EBITDA | 7.95 |
| Current Dividend Yield | 1184.22% |
| Dividend Growth Rate (5Y) | 45.80% |
| Debt-to-Equity Ratio | 1.10 |
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% | $36.25 |
| Discounted Cash Flow (5Y) | 25% | $25.70 |
| Dividend Discount Model (Multi-Stage) | 20% | $11.46 |
| Dividend Discount Model (Stable) | 15% | $7.82 |
| Earnings Power Value | 10% | $7.53 |
| Weighted Average | 100% | $88.76 |
Based on our comprehensive valuation analysis, Foresight VCT PLC's weighted average intrinsic value is $88.76, which is approximately 36.6% above the current market price of $65.00.
Key investment considerations:
Given these factors, we believe Foresight VCT PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.