As of June 19, 2025, John Lewis of Hungerford PLC's estimated intrinsic value ranges from $0.06 to $3.01 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $3.01 | +123.0% |
| Discounted Cash Flow (5Y) | $2.01 | +48.9% |
| Dividend Discount Model (Multi-Stage) | $0.10 | -92.6% |
| Earnings Power Value | $0.06 | -95.3% |
Is John Lewis of Hungerford PLC (JLH.L) undervalued or overvalued?
With the current market price at $1.35, 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 John Lewis of Hungerford 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 | 0.5 | 0.59 |
| Cost of equity | 7.0% | 9.1% |
| Cost of debt | 10.3% | 15.8% |
| Tax rate | 23.2% | 38.3% |
| Debt/Equity ratio | 1.37 | 1.37 |
| After-tax WACC | 7.5% | 9.5% |
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 | $2 | $5M | 72.1% |
| 10-Year Growth | $3 | $7M | 54.0% |
| 5-Year EBITDA | $1 | $4M | 63.7% |
| 10-Year EBITDA | $2 | $6M | 46.9% |
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) | 9.5% - 7.5% |
| Enterprise Value | $2M - $2M |
| Net Debt | $2M |
| Equity Value | $(0)M - $0M |
| Outstanding Shares | 2M |
| Fair Value | $(0) - $0 |
| Selected Fair Value | $0.06 |
| Metric | Value |
|---|---|
| Market Capitalization | $2M |
| Enterprise Value | $4M |
| Trailing P/E | 0.00 |
| Forward P/E | 196.42 |
| Trailing EV/EBITDA | 5.20 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.37 |
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% | $0.90 |
| Discounted Cash Flow (5Y) | 29% | $0.50 |
| Dividend Discount Model (Multi-Stage) | 24% | $0.02 |
| Earnings Power Value | 12% | $0.01 |
| Weighted Average | 100% | $1.68 |
Based on our comprehensive valuation analysis, John Lewis of Hungerford PLC's weighted average intrinsic value is $1.68, which is approximately 24.8% above the current market price of $1.35.
Key investment considerations:
Given these factors, we believe John Lewis of Hungerford PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.