As of June 22, 2025, Holders Technology PLC's estimated intrinsic value ranges from $112.17 to $271.51 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $271.51 | +437.6% |
| Discounted Cash Flow (5Y) | $186.04 | +268.4% |
| Dividend Discount Model (Multi-Stage) | $112.17 | +122.1% |
| Earnings Power Value | $137.08 | +171.4% |
Is Holders Technology PLC (HDT.L) undervalued or overvalued?
With the current market price at $50.50, 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 Holders Technology 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 | 0.42 | 0.52 |
| Cost of equity | 6.5% | 8.6% |
| Cost of debt | 7.0% | 7.0% |
| Tax rate | 2.7% | 7.4% |
| Debt/Equity ratio | 0.06 | 0.06 |
| After-tax WACC | 6.5% | 8.5% |
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 | $186 | $2M | 81.6% |
| 10-Year Growth | $272 | $4M | 70.0% |
| 5-Year EBITDA | $166 | $2M | 77.4% |
| 10-Year EBITDA | $210 | $3M | 55.9% |
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 | $0M |
| Discount Rate (WACC) | 8.5% - 6.5% |
| Enterprise Value | $1M - $1M |
| Net Debt | $(2)M |
| Equity Value | $3M - $3M |
| Outstanding Shares | 0M |
| Fair Value | $130 - $144 |
| Selected Fair Value | $137.08 |
| Metric | Value |
|---|---|
| Market Capitalization | $1M |
| Enterprise Value | $-1M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 6.35 |
| Current Dividend Yield | 390.54% |
| Dividend Growth Rate (5Y) | 56.51% |
| Debt-to-Equity Ratio | 0.06 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $81.45 |
| Discounted Cash Flow (5Y) | 29% | $46.51 |
| Dividend Discount Model (Multi-Stage) | 24% | $22.43 |
| Earnings Power Value | 12% | $13.71 |
| Weighted Average | 100% | $193.07 |
Based on our comprehensive valuation analysis, Holders Technology PLC's weighted average intrinsic value is $193.07, which is approximately 282.3% above the current market price of $50.50.
Key investment considerations:
Given these factors, we believe Holders Technology PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.