As of June 15, 2025, Harworth Group PLC's estimated intrinsic value ranges from $29.21 to $1010.94 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Dividend Discount Model (Multi-Stage) | $370.72 | +110.6% |
| Dividend Discount Model (Stable) | $1010.94 | +474.4% |
| Earnings Power Value | $29.21 | -83.4% |
Is Harworth Group PLC (HWG.L) undervalued or overvalued?
With the current market price at $176.00, 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 Harworth Group 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 | 0.33 | 0.39 |
| Cost of equity | 5.9% | 7.7% |
| Cost of debt | 7.0% | 8.4% |
| Tax rate | 20.6% | 23.1% |
| Debt/Equity ratio | 0.3 | 0.3 |
| After-tax WACC | 5.9% | 7.4% |
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 | $9M |
| Discount Rate (WACC) | 7.4% - 5.9% |
| Enterprise Value | $123M - $156M |
| Net Debt | $48M |
| Equity Value | $75M - $108M |
| Outstanding Shares | 3M |
| Fair Value | $24 - $34 |
| Selected Fair Value | $29.21 |
| Metric | Value |
|---|---|
| Market Capitalization | $552M |
| Enterprise Value | $600M |
| Trailing P/E | 9.64 |
| Forward P/E | 11.11 |
| Trailing EV/EBITDA | 8.45 |
| Current Dividend Yield | 88.83% |
| Dividend Growth Rate (5Y) | 46.04% |
| Debt-to-Equity Ratio | 0.30 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Dividend Discount Model (Multi-Stage) | 44% | $74.14 |
| Dividend Discount Model (Stable) | 33% | $151.64 |
| Earnings Power Value | 22% | $2.92 |
| Weighted Average | 100% | $508.24 |
Based on our comprehensive valuation analysis, Harworth Group PLC's weighted average intrinsic value is $508.24, which is approximately 188.8% above the current market price of $176.00.
Key investment considerations:
Given these factors, we believe Harworth Group PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.