What is LOOP.L's Intrinsic value?

LoopUp Group PLC (LOOP.L) Intrinsic Value Analysis

Executive Summary

As of June 19, 2025, LoopUp Group PLC's estimated intrinsic value ranges from $51.50 to $51.50 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $51.50 +7256.7%

Is LoopUp Group PLC (LOOP.L) undervalued or overvalued?

With the current market price at $0.70, the stock appears to be significantly undervalued.

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 LoopUp Group PLC's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

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 0.94 1.47
Cost of equity 9.6% 15.3%
Cost of debt 4.0% 7.0%
Tax rate 18.0% 23.0%
Debt/Equity ratio 8.09 8.09
After-tax WACC 4.0% 6.5%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $4M
Discount Rate (WACC) 6.5% - 4.0%
Enterprise Value $69M - $112M
Net Debt $7M
Equity Value $62M - $105M
Outstanding Shares 2M
Fair Value $38 - $65
Selected Fair Value $51.50

Key Financial Metrics

Metric Value
Market Capitalization $1M
Enterprise Value $8M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 5.35
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 8.09

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
Earnings Power Value 100% $5.15
Weighted Average 100% $51.50

Investment Conclusion

Based on our comprehensive valuation analysis, LoopUp Group PLC's weighted average intrinsic value is $51.50, which is approximately 7256.7% above the current market price of $0.70.

Key investment considerations:

  • Strong projected earnings growth (-132% to -120% margin)
  • Consistent cash flow generation

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