What is LINV.L's Intrinsic value?

Lendinvest PLC (LINV.L) Intrinsic Value Analysis

Executive Summary

As of December 15, 2025, Lendinvest PLC's estimated intrinsic value ranges from $7.03 to $7.03 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Multi-Stage) $7.03 -81.3%

Is Lendinvest PLC (LINV.L) undervalued or overvalued?

With the current market price at $37.50, the stock appears to be significantly overvalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Lendinvest PLC's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

Weighted Average Cost of Capital (WACC)

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 0.97 4.91
Cost of equity 9.8% 39.3%
Cost of debt 4.0% 5.2%
Tax rate 22.9% 24.5%
Debt/Equity ratio 13.89 13.89
After-tax WACC 3.5% 6.3%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 24.5%
  • Long-term growth rate: 3.1%
  • Fair value: $7.03 (-81.3% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 39.3% (Low) to 9.8% (High)
  • Long-term growth rate: 3.0% (Low) to 3.3% (High)
  • Fair value range: $(2) to $(16)
  • Selected fair value: $-8.99 (-124.0% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $53M
Enterprise Value $784M
Trailing P/E 0.00
Forward P/E 91.12
Trailing EV/EBITDA 45.35
Current Dividend Yield 836.22%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 13.89

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Dividend Discount Model (Multi-Stage) 100% $1.41
Weighted Average 100% $7.03

Investment Conclusion

Based on our comprehensive valuation analysis, Lendinvest PLC's intrinsic value is $7.03, which is approximately 81.3% below the current market price of $37.50.

Key investment considerations:

  • Strong projected earnings growth (-2% to 11% margin)
  • Consistent cash flow generation

Given these factors, we believe Lendinvest PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.