As of May 22, 2025, JPMorgan Mid Cap Investment Trust PLC's estimated intrinsic value ranges from $493.02 to $1032.18 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1032.18 | +13.2% |
| Discounted Cash Flow (5Y) | $991.10 | +8.7% |
| Dividend Discount Model (Multi-Stage) | $517.62 | -43.2% |
| Dividend Discount Model (Stable) | $493.02 | -45.9% |
| Earnings Power Value | $551.00 | -39.6% |
Is JPMorgan Mid Cap Investment Trust PLC (JMF.L) undervalued or overvalued?
With the current market price at $912.00, 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 JPMorgan Mid Cap Investment 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 | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 1.34 | 1.49 |
| Cost of equity | 12.0% | 15.4% |
| Cost of debt | 4.0% | 4.7% |
| Tax rate | 0.1% | 0.1% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.0% | 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 | $991 | $215M | 73.5% |
| 10-Year Growth | $1,032 | $224M | 52.8% |
| 5-Year EBITDA | $649 | $140M | 59.3% |
| 10-Year EBITDA | $776 | $167M | 37.0% |
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 | $11M |
| Discount Rate (WACC) | 10.1% - 8.0% |
| Enterprise Value | $105M - $131M |
| Net Debt | $(2)M |
| Equity Value | $107M - $134M |
| Outstanding Shares | 0M |
| Fair Value | $490 - $612 |
| Selected Fair Value | $551.00 |
| Metric | Value |
|---|---|
| Market Capitalization | $200M |
| Enterprise Value | $197M |
| Trailing P/E | 13.71 |
| Forward P/E | 13.05 |
| Trailing EV/EBITDA | 7.85 |
| Current Dividend Yield | 564.58% |
| Dividend Growth Rate (5Y) | 2.78% |
| Debt-to-Equity Ratio | 1.09 |
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% | $309.66 |
| Discounted Cash Flow (5Y) | 25% | $247.78 |
| Dividend Discount Model (Multi-Stage) | 20% | $103.52 |
| Dividend Discount Model (Stable) | 15% | $73.95 |
| Earnings Power Value | 10% | $55.10 |
| Weighted Average | 100% | $790.01 |
Based on our comprehensive valuation analysis, JPMorgan Mid Cap Investment Trust PLC's weighted average intrinsic value is $790.01, which is approximately 13.4% below the current market price of $912.00.
Key investment considerations:
Given these factors, we believe JPMorgan Mid Cap Investment Trust PLC is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.