As of December 15, 2025, HALEON PLC's estimated intrinsic value ranges from $219.69 to $479.65 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $479.65 | +33.8% |
| Discounted Cash Flow (5Y) | $414.78 | +15.7% |
| Dividend Discount Model (Multi-Stage) | $303.20 | -15.4% |
| Dividend Discount Model (Stable) | $347.42 | -3.1% |
| Earnings Power Value | $219.69 | -38.7% |
Is HALEON PLC (HLN.L) undervalued or overvalued?
With the current market price at $358.50, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate HALEON 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 | 0.46 | 0.54 |
| Cost of equity | 6.8% | 8.8% |
| Cost of debt | 5.1% | 6.8% |
| Tax rate | 24.6% | 27.8% |
| Debt/Equity ratio | 0.32 | 0.32 |
| After-tax WACC | 6.0% | 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 | $415 | $44,846M | 83.8% |
| 10-Year Growth | $480 | $50,640M | 70.6% |
| 5-Year EBITDA | $213 | $26,816M | 73.0% |
| 10-Year EBITDA | $287 | $33,413M | 55.4% |
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 | $1,872M |
| Discount Rate (WACC) | 7.8% - 6.0% |
| Enterprise Value | $23,903M - $30,943M |
| Net Debt | $7,803M |
| Equity Value | $16,100M - $23,140M |
| Outstanding Shares | 89M |
| Fair Value | $180 - $259 |
| Selected Fair Value | $219.69 |
| Metric | Value |
|---|---|
| Market Capitalization | $32017M |
| Enterprise Value | $39820M |
| Trailing P/E | 22.20 |
| Forward P/E | 21.55 |
| Trailing EV/EBITDA | 8.80 |
| Current Dividend Yield | 186.47% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.32 |
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% | $143.90 |
| Discounted Cash Flow (5Y) | 25% | $103.69 |
| Dividend Discount Model (Multi-Stage) | 20% | $60.64 |
| Dividend Discount Model (Stable) | 15% | $52.11 |
| Earnings Power Value | 10% | $21.97 |
| Weighted Average | 100% | $382.31 |
Based on our comprehensive valuation analysis, HALEON PLC's intrinsic value is $382.31, which is approximately 6.6% above the current market price of $358.50.
Key investment considerations:
Given these factors, we believe HALEON PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.