As of December 15, 2025, Impact Healthcare REIT PLC's estimated intrinsic value ranges from $31.80 to $164.73 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $164.73 | +96.1% |
| Discounted Cash Flow (5Y) | $125.98 | +50.0% |
| Dividend Discount Model (Multi-Stage) | $128.86 | +53.4% |
| Dividend Discount Model (Stable) | $127.55 | +51.8% |
| Earnings Power Value | $31.80 | -62.1% |
Is Impact Healthcare REIT PLC (IHR.L) undervalued or overvalued?
With the current market price at $84.00, 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 Impact Healthcare REIT 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 | 0.84 | 0.92 |
| Cost of equity | 9.0% | 11.4% |
| Cost of debt | 4.3% | 5.2% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.53 | 0.53 |
| After-tax WACC | 7.1% | 8.9% |
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 | $126 | $685M | 77.2% |
| 10-Year Growth | $165 | $842M | 60.9% |
| 5-Year EBITDA | $118 | $651M | 76.0% |
| 10-Year EBITDA | $156 | $808M | 59.2% |
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 | $24M |
| Discount Rate (WACC) | 8.9% - 7.1% |
| Enterprise Value | $270M - $339M |
| Net Debt | $176M |
| Equity Value | $94M - $163M |
| Outstanding Shares | 4M |
| Fair Value | $23 - $40 |
| Selected Fair Value | $31.80 |
| Metric | Value |
|---|---|
| Market Capitalization | $340M |
| Enterprise Value | $515M |
| Trailing P/E | 7.14 |
| Forward P/E | 7.87 |
| Trailing EV/EBITDA | 10.45 |
| Current Dividend Yield | 831.49% |
| Dividend Growth Rate (5Y) | 14.57% |
| Debt-to-Equity Ratio | 0.53 |
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% | $49.42 |
| Discounted Cash Flow (5Y) | 25% | $31.49 |
| Dividend Discount Model (Multi-Stage) | 20% | $25.77 |
| Dividend Discount Model (Stable) | 15% | $19.13 |
| Earnings Power Value | 10% | $3.18 |
| Weighted Average | 100% | $129.00 |
Based on our comprehensive valuation analysis, Impact Healthcare REIT PLC's intrinsic value is $129.00, which is approximately 53.6% above the current market price of $84.00.
Key investment considerations:
Given these factors, we believe Impact Healthcare REIT PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.