As of June 13, 2025, Intertek Group PLC's estimated intrinsic value ranges from $2969.76 to $19723.12 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $3913.21 | -18.9% |
| Discounted Cash Flow (5Y) | $3578.76 | -25.8% |
| Dividend Discount Model (Multi-Stage) | $3117.58 | -35.4% |
| Dividend Discount Model (Stable) | $2969.76 | -38.5% |
| Earnings Power Value | $19723.12 | +308.7% |
Is Intertek Group PLC (ITRK.L) undervalued or overvalued?
With the current market price at $4826.00, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Intertek 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 | 0.59 | 0.76 |
| Cost of equity | 7.5% | 10.3% |
| Cost of debt | 4.0% | 4.7% |
| Tax rate | 24.9% | 25.4% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 6.9% | 9.4% |
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 | $3,579 | $6,489M | 76.0% |
| 10-Year Growth | $3,913 | $7,021M | 57.2% |
| 5-Year EBITDA | $2,332 | $4,506M | 65.4% |
| 10-Year EBITDA | $2,860 | $5,347M | 43.8% |
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 | $2,572M |
| Discount Rate (WACC) | 9.4% - 6.9% |
| Enterprise Value | $27,260M - $37,052M |
| Net Debt | $799M |
| Equity Value | $26,461M - $36,253M |
| Outstanding Shares | 2M |
| Fair Value | $16,643 - $22,803 |
| Selected Fair Value | $19723.12 |
| Metric | Value |
|---|---|
| Market Capitalization | $7673M |
| Enterprise Value | $8472M |
| Trailing P/E | 22.21 |
| Forward P/E | 19.88 |
| Trailing EV/EBITDA | 5.65 |
| Current Dividend Yield | 273.38% |
| Dividend Growth Rate (5Y) | 4.87% |
| Debt-to-Equity Ratio | 0.15 |
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% | $1173.96 |
| Discounted Cash Flow (5Y) | 25% | $894.69 |
| Dividend Discount Model (Multi-Stage) | 20% | $623.52 |
| Dividend Discount Model (Stable) | 15% | $445.46 |
| Earnings Power Value | 10% | $1972.31 |
| Weighted Average | 100% | $5109.94 |
Based on our comprehensive valuation analysis, Intertek Group PLC's weighted average intrinsic value is $5109.94, which is approximately 5.9% above the current market price of $4826.00.
Key investment considerations:
Given these factors, we believe Intertek Group PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.