As of June 8, 2025, Jupiter Emerging & Frontier Income Trust Plc's estimated intrinsic value ranges from $155.97 to $481.83 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $481.83 | +412.6% |
| Discounted Cash Flow (5Y) | $449.20 | +377.9% |
| Dividend Discount Model (Multi-Stage) | $350.56 | +272.9% |
| Dividend Discount Model (Stable) | $191.55 | +103.8% |
| Earnings Power Value | $155.97 | +65.9% |
Is Jupiter Emerging & Frontier Income Trust Plc (JEFI.L) undervalued or overvalued?
With the current market price at $94.00, 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 Jupiter Emerging & Frontier Income Trust 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.12 | 1.22 |
| Cost of equity | 8.9% | 11.7% |
| Cost of debt | 4.0% | 7.0% |
| Tax rate | 4.0% | 4.8% |
| Debt/Equity ratio | 0.12 | 0.12 |
| After-tax WACC | 8.4% | 11.1% |
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 | $449 | $270M | 63.7% |
| 10-Year Growth | $482 | $290M | 42.2% |
| 5-Year EBITDA | $442 | $266M | 63.1% |
| 10-Year EBITDA | $477 | $287M | 41.6% |
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 | $9M |
| Discount Rate (WACC) | 11.1% - 8.4% |
| Enterprise Value | $80M - $106M |
| Net Debt | $(1)M |
| Equity Value | $81M - $107M |
| Outstanding Shares | 1M |
| Fair Value | $134 - $178 |
| Selected Fair Value | $155.97 |
| Metric | Value |
|---|---|
| Market Capitalization | $57M |
| Enterprise Value | $56M |
| Trailing P/E | 4.26 |
| Forward P/E | 2.43 |
| Trailing EV/EBITDA | 10.15 |
| Current Dividend Yield | 1492.46% |
| Dividend Growth Rate (5Y) | -4.02% |
| Debt-to-Equity Ratio | 0.12 |
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% | $144.55 |
| Discounted Cash Flow (5Y) | 25% | $112.30 |
| Dividend Discount Model (Multi-Stage) | 20% | $70.11 |
| Dividend Discount Model (Stable) | 15% | $28.73 |
| Earnings Power Value | 10% | $15.60 |
| Weighted Average | 100% | $371.29 |
Based on our comprehensive valuation analysis, Jupiter Emerging & Frontier Income Trust Plc's weighted average intrinsic value is $371.29, which is approximately 295.0% above the current market price of $94.00.
Key investment considerations:
Given these factors, we believe Jupiter Emerging & Frontier Income Trust Plc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.