As of June 6, 2025, Gresham Technologies PLC's estimated intrinsic value ranges from $64.39 to $196.89 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $196.89 | +21.2% |
| Discounted Cash Flow (5Y) | $96.17 | -40.8% |
| Dividend Discount Model (Multi-Stage) | $160.39 | -1.3% |
| Dividend Discount Model (Stable) | $99.61 | -38.7% |
| Earnings Power Value | $64.39 | -60.4% |
Is Gresham Technologies PLC (GHT.L) undervalued or overvalued?
With the current market price at $162.50, 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 Gresham Technologies 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 | 0.51 | 0.74 |
| Cost of equity | 7.0% | 10.2% |
| Cost of debt | 4.6% | 4.6% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 7.0% | 10.1% |
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 | $96 | $78M | 82.4% |
| 10-Year Growth | $197 | $162M | 74.3% |
| 5-Year EBITDA | $129 | $105M | 87.0% |
| 10-Year EBITDA | $188 | $154M | 73.0% |
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 | $4M |
| Discount Rate (WACC) | 10.1% - 7.0% |
| Enterprise Value | $42M - $60M |
| Net Debt | $(3)M |
| Equity Value | $45M - $63M |
| Outstanding Shares | 1M |
| Fair Value | $53 - $75 |
| Selected Fair Value | $64.39 |
| Metric | Value |
|---|---|
| Market Capitalization | $137M |
| Enterprise Value | $133M |
| Trailing P/E | 44.40 |
| Forward P/E | 39.45 |
| Trailing EV/EBITDA | 7.45 |
| Current Dividend Yield | 45.84% |
| Dividend Growth Rate (5Y) | 16.57% |
| Debt-to-Equity Ratio | 0.01 |
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% | $59.07 |
| Discounted Cash Flow (5Y) | 25% | $24.04 |
| Dividend Discount Model (Multi-Stage) | 20% | $32.08 |
| Dividend Discount Model (Stable) | 15% | $14.94 |
| Earnings Power Value | 10% | $6.44 |
| Weighted Average | 100% | $136.57 |
Based on our comprehensive valuation analysis, Gresham Technologies PLC's weighted average intrinsic value is $136.57, which is approximately 16.0% below the current market price of $162.50.
Key investment considerations:
Given these factors, we believe Gresham Technologies PLC is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.