As of June 15, 2025, Highcroft Investments PLC's estimated intrinsic value ranges from $847.70 to $1168.58 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1168.58 | +98.9% |
| Discounted Cash Flow (5Y) | $866.59 | +47.5% |
| Earnings Power Value | $847.70 | +44.3% |
Is Highcroft Investments PLC (HCFT.L) undervalued or overvalued?
With the current market price at $587.50, 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 Highcroft Investments 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 | 0.63 | 0.82 |
| Cost of equity | 7.8% | 10.7% |
| Cost of debt | 4.0% | 5.2% |
| Tax rate | 0.4% | 1.3% |
| Debt/Equity ratio | 0.91 | 0.91 |
| After-tax WACC | 6.0% | 8.1% |
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 | $867 | $66M | 75.4% |
| 10-Year Growth | $1,169 | $82M | 58.7% |
| 5-Year EBITDA | $896 | $68M | 75.9% |
| 10-Year EBITDA | $1,195 | $83M | 59.4% |
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) | 8.1% - 6.0% |
| Enterprise Value | $56M - $75M |
| Net Debt | $22M |
| Equity Value | $33M - $53M |
| Outstanding Shares | 0M |
| Fair Value | $654 - $1,041 |
| Selected Fair Value | $847.70 |
| Metric | Value |
|---|---|
| Market Capitalization | $30M |
| Enterprise Value | $52M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 15.95 |
| Current Dividend Yield | 979.51% |
| Dividend Growth Rate (5Y) | 3.66% |
| Debt-to-Equity Ratio | 0.91 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 46% | $350.57 |
| Discounted Cash Flow (5Y) | 38% | $216.65 |
| Earnings Power Value | 15% | $84.77 |
| Weighted Average | 100% | $1003.06 |
Based on our comprehensive valuation analysis, Highcroft Investments PLC's weighted average intrinsic value is $1003.06, which is approximately 70.7% above the current market price of $587.50.
Key investment considerations:
Given these factors, we believe Highcroft Investments PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.