As of June 21, 2025, Indivior PLC's estimated intrinsic value ranges from $512.10 to $1847.83 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $627.36 | -40.1% |
| Discounted Cash Flow (5Y) | $583.82 | -44.2% |
| Dividend Discount Model (Multi-Stage) | $512.10 | -51.1% |
| Earnings Power Value | $1847.83 | +76.5% |
Is Indivior PLC (INDV.L) undervalued or overvalued?
With the current market price at $1047.00, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Indivior 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 | 0.4 | 0.58 |
| Cost of equity | 6.4% | 9.1% |
| Cost of debt | 7.0% | 8.8% |
| Tax rate | 14.0% | 28.4% |
| Debt/Equity ratio | 0.2 | 0.2 |
| After-tax WACC | 6.3% | 8.6% |
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 | $792 | $923M | 86.0% |
| 10-Year Growth | $851 | $995M | 74.2% |
| 5-Year EBITDA | $418 | $466M | 72.3% |
| 10-Year EBITDA | $564 | $644M | 60.2% |
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 | $220M |
| Discount Rate (WACC) | 8.6% - 6.3% |
| Enterprise Value | $2,550M - $3,477M |
| Net Debt | $(43)M |
| Equity Value | $2,593M - $3,520M |
| Outstanding Shares | 1M |
| Fair Value | $2,127 - $2,888 |
| Selected Fair Value | $1847.83 |
| Metric | Value |
|---|---|
| Market Capitalization | $1276M |
| Enterprise Value | $1244M |
| Trailing P/E | 0.00 |
| Forward P/E | 95.00 |
| Trailing EV/EBITDA | 4.85 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.20 |
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% | $188.21 |
| Discounted Cash Flow (5Y) | 29% | $145.96 |
| Dividend Discount Model (Multi-Stage) | 24% | $102.42 |
| Earnings Power Value | 12% | $184.78 |
| Weighted Average | 100% | $731.02 |
Based on our comprehensive valuation analysis, Indivior PLC's weighted average intrinsic value is $731.02, which is approximately 30.2% below the current market price of $1047.00.
Key investment considerations:
Given these factors, we believe Indivior PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.