As of December 15, 2025, Keywords Studios PLC's estimated intrinsic value ranges from $663.66 to $3711.68 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $3711.68 | +51.7% |
| Discounted Cash Flow (5Y) | $1981.78 | -19.0% |
| Dividend Discount Model (Multi-Stage) | $1798.09 | -26.5% |
| Earnings Power Value | $663.66 | -72.9% |
Is Keywords Studios PLC (KWS.L) undervalued or overvalued?
With the current market price at $2446.00, 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 Keywords Studios 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 | 0.68 | 0.84 |
| Cost of equity | 8.1% | 10.9% |
| Cost of debt | 7.1% | 9.0% |
| Tax rate | 32.5% | 37.5% |
| Debt/Equity ratio | 0.09 | 0.09 |
| After-tax WACC | 7.8% | 10.4% |
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 | $2,257 | $1,968M | 80.3% |
| 10-Year Growth | $4,228 | $3,555M | 67.6% |
| 5-Year EBITDA | $2,314 | $2,014M | 80.8% |
| 10-Year EBITDA | $4,083 | $3,439M | 66.5% |
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 | $68M |
| Discount Rate (WACC) | 10.4% - 7.8% |
| Enterprise Value | $649M - $869M |
| Net Debt | $151M |
| Equity Value | $499M - $719M |
| Outstanding Shares | 1M |
| Fair Value | $619 - $893 |
| Selected Fair Value | $663.66 |
| Metric | Value |
|---|---|
| Market Capitalization | $1970M |
| Enterprise Value | $2102M |
| Trailing P/E | 0.00 |
| Forward P/E | 47.35 |
| Trailing EV/EBITDA | 8.20 |
| Current Dividend Yield | 11.25% |
| Dividend Growth Rate (5Y) | 17.88% |
| Debt-to-Equity Ratio | 0.09 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $1113.50 |
| Discounted Cash Flow (5Y) | 29% | $495.45 |
| Dividend Discount Model (Multi-Stage) | 24% | $359.62 |
| Earnings Power Value | 12% | $66.37 |
| Weighted Average | 100% | $2394.04 |
Based on our comprehensive valuation analysis, Keywords Studios PLC's intrinsic value is $2394.04, which is approximately 2.1% below the current market price of $2446.00.
Key investment considerations:
Given these factors, we believe Keywords Studios PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.