As of June 8, 2025, Inspired Energy PLC's estimated intrinsic value ranges from $55.86 to $165.81 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $165.81 | +121.1% |
| Discounted Cash Flow (5Y) | $110.63 | +47.5% |
| Dividend Discount Model (Multi-Stage) | $80.26 | +7.0% |
| Dividend Discount Model (Stable) | $55.86 | -25.5% |
| Earnings Power Value | $114.55 | +52.7% |
Is Inspired Energy PLC (INSE.L) undervalued or overvalued?
With the current market price at $75.00, 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 Inspired Energy 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 | 0.77 | 1.01 |
| Cost of equity | 8.6% | 12.0% |
| Cost of debt | 4.7% | 7.0% |
| Tax rate | 13.0% | 16.9% |
| Debt/Equity ratio | 0.55 | 0.55 |
| After-tax WACC | 7.0% | 9.8% |
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 | $111 | $241M | 72.4% |
| 10-Year Growth | $166 | $330M | 56.5% |
| 5-Year EBITDA | $50 | $143M | 53.6% |
| 10-Year EBITDA | $97 | $219M | 34.6% |
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 | $20M |
| Discount Rate (WACC) | 9.8% - 7.0% |
| Enterprise Value | $205M - $289M |
| Net Debt | $62M |
| Equity Value | $144M - $227M |
| Outstanding Shares | 2M |
| Fair Value | $89 - $140 |
| Selected Fair Value | $114.55 |
| Metric | Value |
|---|---|
| Market Capitalization | $121M |
| Enterprise Value | $183M |
| Trailing P/E | 12.60 |
| Forward P/E | 9.81 |
| Trailing EV/EBITDA | 2.90 |
| Current Dividend Yield | 250.55% |
| Dividend Growth Rate (5Y) | 34.68% |
| Debt-to-Equity Ratio | 0.55 |
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% | $49.74 |
| Discounted Cash Flow (5Y) | 25% | $27.66 |
| Dividend Discount Model (Multi-Stage) | 20% | $16.05 |
| Dividend Discount Model (Stable) | 15% | $8.38 |
| Earnings Power Value | 10% | $11.45 |
| Weighted Average | 100% | $113.28 |
Based on our comprehensive valuation analysis, Inspired Energy PLC's weighted average intrinsic value is $113.28, which is approximately 51.0% above the current market price of $75.00.
Key investment considerations:
Given these factors, we believe Inspired Energy PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.