As of May 25, 2025, Keller Group PLC's estimated intrinsic value ranges from $1556.41 to $19458.70 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1870.31 | +19.0% |
| Discounted Cash Flow (5Y) | $1819.58 | +15.7% |
| Dividend Discount Model (Multi-Stage) | $1556.41 | -1.0% |
| Dividend Discount Model (Stable) | $1599.22 | +1.7% |
| Earnings Power Value | $19458.70 | +1137.8% |
Is Keller Group PLC (KLR.L) undervalued or overvalued?
With the current market price at $1572.00, 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 Keller Group 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 | 0.93 | 1.15 |
| Cost of equity | 9.5% | 13.0% |
| Cost of debt | 4.8% | 4.9% |
| Tax rate | 21.5% | 24.8% |
| Debt/Equity ratio | 0.3 | 0.3 |
| After-tax WACC | 8.2% | 10.9% |
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 | $1,820 | $1,487M | 86.1% |
| 10-Year Growth | $1,870 | $1,523M | 55.7% |
| 5-Year EBITDA | $1,914 | $1,553M | 86.7% |
| 10-Year EBITDA | $2,068 | $1,662M | 59.4% |
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 | $1,307M |
| Discount Rate (WACC) | 10.9% - 8.2% |
| Enterprise Value | $12,021M - $15,917M |
| Net Debt | $199M |
| Equity Value | $11,822M - $15,718M |
| Outstanding Shares | 1M |
| Fair Value | $16,706 - $22,212 |
| Selected Fair Value | $19458.70 |
| Metric | Value |
|---|---|
| Market Capitalization | $1112M |
| Enterprise Value | $1311M |
| Trailing P/E | 7.82 |
| Forward P/E | 7.38 |
| Trailing EV/EBITDA | 6.30 |
| Current Dividend Yield | 311.03% |
| Dividend Growth Rate (5Y) | 7.51% |
| Debt-to-Equity Ratio | 0.30 |
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% | $561.09 |
| Discounted Cash Flow (5Y) | 25% | $454.89 |
| Dividend Discount Model (Multi-Stage) | 20% | $311.28 |
| Dividend Discount Model (Stable) | 15% | $239.88 |
| Earnings Power Value | 10% | $1945.87 |
| Weighted Average | 100% | $3513.02 |
Based on our comprehensive valuation analysis, Keller Group PLC's weighted average intrinsic value is $3513.02, which is approximately 123.5% above the current market price of $1572.00.
Key investment considerations:
Given these factors, we believe Keller Group PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.