As of May 22, 2025, Fulham Shore PLC's estimated intrinsic value ranges from $6.65 to $17.25 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $17.25 | +22.8% |
| Discounted Cash Flow (5Y) | $11.67 | -16.9% |
| Dividend Discount Model (Multi-Stage) | $8.10 | -42.4% |
| Dividend Discount Model (Stable) | $6.65 | -52.7% |
| Earnings Power Value | $8.90 | -36.6% |
Is Fulham Shore PLC (FUL.L) undervalued or overvalued?
With the current market price at $14.05, the stock appears to be moderately 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 Fulham Shore 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 | 0.5 | 0.56 |
| Cost of equity | 7.0% | 8.9% |
| Cost of debt | 7.6% | 8.1% |
| Tax rate | 28.3% | 41.7% |
| Debt/Equity ratio | 0.97 | 0.97 |
| After-tax WACC | 6.2% | 6.9% |
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 | $12 | $165M | 87.9% |
| 10-Year Growth | $17 | $200M | 77.5% |
| 5-Year EBITDA | $8 | $144M | 86.1% |
| 10-Year EBITDA | $13 | $170M | 73.5% |
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 | $10M |
| Discount Rate (WACC) | 6.9% - 6.2% |
| Enterprise Value | $140M - $154M |
| Net Debt | $91M |
| Equity Value | $49M - $63M |
| Outstanding Shares | 6M |
| Fair Value | $8 - $10 |
| Selected Fair Value | $8.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $89M |
| Enterprise Value | $180M |
| Trailing P/E | 49.73 |
| Forward P/E | 32.90 |
| Trailing EV/EBITDA | 9.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.97 |
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% | $5.18 |
| Discounted Cash Flow (5Y) | 25% | $2.92 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.62 |
| Dividend Discount Model (Stable) | 15% | $1.00 |
| Earnings Power Value | 10% | $0.89 |
| Weighted Average | 100% | $11.60 |
Based on our comprehensive valuation analysis, Fulham Shore PLC's weighted average intrinsic value is $11.60, which is approximately 17.4% below the current market price of $14.05.
Key investment considerations:
Given these factors, we believe Fulham Shore PLC is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.