As of May 22, 2025, Image Scan Holdings PLC's estimated intrinsic value ranges from $0.23 to $4.49 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $3.80 | +162.1% |
| Discounted Cash Flow (5Y) | $2.42 | +66.9% |
| Dividend Discount Model (Multi-Stage) | $3.71 | +156.0% |
| Dividend Discount Model (Stable) | $4.49 | +209.9% |
| Earnings Power Value | $0.23 | -84.2% |
Is Image Scan Holdings PLC (IGE.L) undervalued or overvalued?
With the current market price at $1.45, 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 Image Scan Holdings 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 | 0.44 |
| Cost of equity | 6.0% | 8.0% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 22.3% | 24.2% |
| Debt/Equity ratio | 0.07 | 0.07 |
| After-tax WACC | 5.8% | 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 | $2 | $2M | 85.4% |
| 10-Year Growth | $4 | $4M | 76.5% |
| 5-Year EBITDA | $3 | $4M | 90.3% |
| 10-Year EBITDA | $4 | $5M | 78.1% |
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 | $(0)M |
| Discount Rate (WACC) | 7.8% - 5.8% |
| Enterprise Value | $(0)M - $(1)M |
| Net Debt | $(1)M |
| Equity Value | $0M - $0M |
| Outstanding Shares | 1M |
| Fair Value | $0 - $0 |
| Selected Fair Value | $0.23 |
| Metric | Value |
|---|---|
| Market Capitalization | $2M |
| Enterprise Value | $1M |
| Trailing P/E | 9.30 |
| Forward P/E | 9.40 |
| Trailing EV/EBITDA | 9.05 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.07 |
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% | $1.14 |
| Discounted Cash Flow (5Y) | 25% | $0.61 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.74 |
| Dividend Discount Model (Stable) | 15% | $0.67 |
| Earnings Power Value | 10% | $0.02 |
| Weighted Average | 100% | $3.18 |
Based on our comprehensive valuation analysis, Image Scan Holdings PLC's weighted average intrinsic value is $3.18, which is approximately 119.6% above the current market price of $1.45.
Key investment considerations:
Given these factors, we believe Image Scan Holdings PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.