As of June 17, 2025, James Latham PLC's estimated intrinsic value ranges from $1300.24 to $2669.40 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1738.62 | +51.2% |
| Discounted Cash Flow (5Y) | $1672.92 | +45.5% |
| Dividend Discount Model (Multi-Stage) | $1651.72 | +43.6% |
| Dividend Discount Model (Stable) | $1300.24 | +13.1% |
| Earnings Power Value | $2669.40 | +132.1% |
Is James Latham PLC (LTHM.L) undervalued or overvalued?
With the current market price at $1150.00, 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 James Latham 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 | 0.51 | 0.54 |
| Cost of equity | 7.1% | 8.8% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 20.0% | 20.7% |
| Debt/Equity ratio | 0.04 | 0.04 |
| After-tax WACC | 6.9% | 8.6% |
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 | $1,673 | $268M | 73.0% |
| 10-Year Growth | $1,739 | $281M | 53.2% |
| 5-Year EBITDA | $1,640 | $262M | 72.4% |
| 10-Year EBITDA | $1,748 | $283M | 53.5% |
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 | $35M |
| Discount Rate (WACC) | 8.6% - 6.9% |
| Enterprise Value | $411M - $511M |
| Net Debt | $(56)M |
| Equity Value | $467M - $567M |
| Outstanding Shares | 0M |
| Fair Value | $2,412 - $2,926 |
| Selected Fair Value | $2669.40 |
| Metric | Value |
|---|---|
| Market Capitalization | $223M |
| Enterprise Value | $167M |
| Trailing P/E | 10.89 |
| Forward P/E | 9.33 |
| Trailing EV/EBITDA | 8.10 |
| Current Dividend Yield | 708.32% |
| Dividend Growth Rate (5Y) | 19.25% |
| Debt-to-Equity Ratio | 0.04 |
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% | $521.59 |
| Discounted Cash Flow (5Y) | 25% | $418.23 |
| Dividend Discount Model (Multi-Stage) | 20% | $330.34 |
| Dividend Discount Model (Stable) | 15% | $195.04 |
| Earnings Power Value | 10% | $266.94 |
| Weighted Average | 100% | $1732.13 |
Based on our comprehensive valuation analysis, James Latham PLC's weighted average intrinsic value is $1732.13, which is approximately 50.6% above the current market price of $1150.00.
Key investment considerations:
Given these factors, we believe James Latham PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.