As of May 23, 2025, Itim Group PLC's estimated intrinsic value ranges from $20.73 to $72.81 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $72.81 | +46.4% |
| Discounted Cash Flow (5Y) | $22.58 | -54.6% |
| Dividend Discount Model (Multi-Stage) | $40.47 | -18.7% |
| Earnings Power Value | $20.73 | -58.3% |
Is Itim Group PLC (ITIM.L) undervalued or overvalued?
With the current market price at $49.75, the stock appears to be moderately 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 Itim 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 | 0.73 | 0.99 |
| Cost of equity | 8.3% | 11.9% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.07 | 0.07 |
| After-tax WACC | 8.0% | 11.3% |
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 | $23 | $5M | 100.8% |
| 10-Year Growth | $73 | $20M | 77.4% |
| 5-Year EBITDA | $150 | $44M | 100.1% |
| 10-Year EBITDA | $202 | $60M | 92.3% |
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 | $0M |
| Discount Rate (WACC) | 11.3% - 8.0% |
| Enterprise Value | $4M - $5M |
| Net Debt | $(2)M |
| Equity Value | $6M - $7M |
| Outstanding Shares | 0M |
| Fair Value | $18 - $23 |
| Selected Fair Value | $20.73 |
| Metric | Value |
|---|---|
| Market Capitalization | $15M |
| Enterprise Value | $13M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 17.90 |
| Current Dividend Yield | 62.96% |
| 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) | 35% | $21.84 |
| Discounted Cash Flow (5Y) | 29% | $5.65 |
| Dividend Discount Model (Multi-Stage) | 24% | $8.09 |
| Earnings Power Value | 12% | $2.07 |
| Weighted Average | 100% | $44.30 |
Based on our comprehensive valuation analysis, Itim Group PLC's weighted average intrinsic value is $44.30, which is approximately 11.0% below the current market price of $49.75.
Key investment considerations:
Given these factors, we believe Itim Group PLC is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.