As of May 22, 2025, Learning Technologies Group PLC's estimated intrinsic value ranges from $53.87 to $124.75 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $92.14 | -7.8% |
| Discounted Cash Flow (5Y) | $53.87 | -46.1% |
| Dividend Discount Model (Multi-Stage) | $56.94 | -43.0% |
| Dividend Discount Model (Stable) | $100.04 | +0.1% |
| Earnings Power Value | $124.75 | +24.9% |
Is Learning Technologies Group PLC (LTG.L) undervalued or overvalued?
With the current market price at $99.90, the stock appears to be moderately 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 Learning Technologies 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 | 0.75 | 0.79 |
| Cost of equity | 8.5% | 10.5% |
| Cost of debt | 4.0% | 5.2% |
| Tax rate | 27.1% | 28.8% |
| Debt/Equity ratio | 0.21 | 0.21 |
| After-tax WACC | 7.5% | 9.3% |
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 | $54 | $493M | 79.1% |
| 10-Year Growth | $92 | $796M | 71.4% |
| 5-Year EBITDA | $90 | $783M | 86.9% |
| 10-Year EBITDA | $108 | $925M | 75.4% |
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 | $88M |
| Discount Rate (WACC) | 9.3% - 7.5% |
| Enterprise Value | $942M - $1,167M |
| Net Debt | $66M |
| Equity Value | $876M - $1,101M |
| Outstanding Shares | 8M |
| Fair Value | $111 - $139 |
| Selected Fair Value | $124.75 |
| Metric | Value |
|---|---|
| Market Capitalization | $792M |
| Enterprise Value | $858M |
| Trailing P/E | 17.52 |
| Forward P/E | 27.88 |
| Trailing EV/EBITDA | 12.45 |
| Current Dividend Yield | 280.74% |
| Dividend Growth Rate (5Y) | 33.30% |
| Debt-to-Equity Ratio | 0.21 |
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% | $27.64 |
| Discounted Cash Flow (5Y) | 25% | $13.47 |
| Dividend Discount Model (Multi-Stage) | 20% | $11.39 |
| Dividend Discount Model (Stable) | 15% | $15.01 |
| Earnings Power Value | 10% | $12.47 |
| Weighted Average | 100% | $79.98 |
Based on our comprehensive valuation analysis, Learning Technologies Group PLC's weighted average intrinsic value is $79.98, which is approximately 19.9% below the current market price of $99.90.
Key investment considerations:
Given these factors, we believe Learning Technologies Group PLC is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.