As of June 10, 2025, JZ Capital Partners Ltd's estimated intrinsic value ranges from $11.49 to $206.61 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $182.64 | -9.6% |
| Discounted Cash Flow (5Y) | $177.03 | -12.4% |
| Dividend Discount Model (Multi-Stage) | $11.49 | -94.3% |
| Dividend Discount Model (Stable) | $71.87 | -64.4% |
| Earnings Power Value | $206.61 | +2.3% |
Is JZ Capital Partners Ltd (JZCP.L) undervalued or overvalued?
With the current market price at $202.00, the stock appears to be significantly 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 JZ Capital Partners Ltd'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 | 1.3 | 1.65 |
| Cost of equity | 11.8% | 16.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 0.1% | 0.2% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.4% | 10.8% |
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 | $239 | $120M | 71.2% |
| 10-Year Growth | $247 | $125M | 49.8% |
| 5-Year EBITDA | $144 | $61M | 43.8% |
| 10-Year EBITDA | $177 | $82M | 23.8% |
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 | $14M |
| Discount Rate (WACC) | 10.8% - 8.4% |
| Enterprise Value | $126M - $162M |
| Net Debt | $(26)M |
| Equity Value | $152M - $188M |
| Outstanding Shares | 1M |
| Fair Value | $250 - $309 |
| Selected Fair Value | $206.61 |
| Metric | Value |
|---|---|
| Market Capitalization | $123M |
| Enterprise Value | $104M |
| Trailing P/E | 20.79 |
| Forward P/E | 99.03 |
| Trailing EV/EBITDA | 4.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.20 |
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% | $54.79 |
| Discounted Cash Flow (5Y) | 25% | $44.26 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.30 |
| Dividend Discount Model (Stable) | 15% | $10.78 |
| Earnings Power Value | 10% | $20.66 |
| Weighted Average | 100% | $132.79 |
Based on our comprehensive valuation analysis, JZ Capital Partners Ltd's weighted average intrinsic value is $132.79, which is approximately 34.3% below the current market price of $202.00.
Key investment considerations:
Given these factors, we believe JZ Capital Partners Ltd is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.