As of June 15, 2025, James Halstead PLC's estimated intrinsic value ranges from $136.04 to $165.29 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $165.29 | +3.6% |
| Discounted Cash Flow (5Y) | $162.43 | +1.8% |
| Dividend Discount Model (Multi-Stage) | $144.09 | -9.7% |
| Dividend Discount Model (Stable) | $138.19 | -13.4% |
| Earnings Power Value | $136.04 | -14.7% |
Is James Halstead PLC (JHD.L) undervalued or overvalued?
With the current market price at $159.50, 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 James Halstead 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 | 0.74 |
| Cost of equity | 7.5% | 10.1% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 22.0% | 22.4% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 7.5% | 10.1% |
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 | $162 | $631M | 73.7% |
| 10-Year Growth | $165 | $643M | 52.9% |
| 5-Year EBITDA | $127 | $479M | 65.4% |
| 10-Year EBITDA | $140 | $534M | 43.3% |
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 | $45M |
| Discount Rate (WACC) | 10.1% - 7.5% |
| Enterprise Value | $442M - $596M |
| Net Debt | $(58)M |
| Equity Value | $500M - $654M |
| Outstanding Shares | 4M |
| Fair Value | $118 - $154 |
| Selected Fair Value | $136.04 |
| Metric | Value |
|---|---|
| Market Capitalization | $676M |
| Enterprise Value | $619M |
| Trailing P/E | 15.94 |
| Forward P/E | 14.24 |
| Trailing EV/EBITDA | 7.00 |
| Current Dividend Yield | 523.92% |
| Dividend Growth Rate (5Y) | 8.04% |
| Debt-to-Equity Ratio | 0.01 |
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% | $49.59 |
| Discounted Cash Flow (5Y) | 25% | $40.61 |
| Dividend Discount Model (Multi-Stage) | 20% | $28.82 |
| Dividend Discount Model (Stable) | 15% | $20.73 |
| Earnings Power Value | 10% | $13.60 |
| Weighted Average | 100% | $153.35 |
Based on our comprehensive valuation analysis, James Halstead PLC's weighted average intrinsic value is $153.35, which is approximately 3.9% below the current market price of $159.50.
Key investment considerations:
Given these factors, we believe James Halstead PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.