As of June 12, 2025, Michelmersh Brick Holdings PLC's estimated intrinsic value ranges from $95.43 to $131.90 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $119.89 | +7.0% |
| Discounted Cash Flow (5Y) | $95.43 | -14.8% |
| Dividend Discount Model (Multi-Stage) | $105.73 | -5.6% |
| Dividend Discount Model (Stable) | $97.52 | -12.9% |
| Earnings Power Value | $131.90 | +17.8% |
Is Michelmersh Brick Holdings PLC (MBH.L) undervalued or overvalued?
With the current market price at $112.00, 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 Michelmersh Brick Holdings 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 | 0.71 | 0.87 |
| Cost of equity | 8.3% | 11.0% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 23.0% | 25.3% |
| Debt/Equity ratio | 0.02 | 0.02 |
| After-tax WACC | 8.2% | 10.9% |
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 | $95 | $82M | 70.8% |
| 10-Year Growth | $120 | $104M | 56.7% |
| 5-Year EBITDA | $130 | $113M | 78.8% |
| 10-Year EBITDA | $145 | $128M | 64.5% |
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 | $11M |
| Discount Rate (WACC) | 10.9% - 8.2% |
| Enterprise Value | $99M - $132M |
| Net Debt | $(4)M |
| Equity Value | $103M - $136M |
| Outstanding Shares | 1M |
| Fair Value | $114 - $150 |
| Selected Fair Value | $131.90 |
| Metric | Value |
|---|---|
| Market Capitalization | $101M |
| Enterprise Value | $97M |
| Trailing P/E | 16.56 |
| Forward P/E | 14.92 |
| Trailing EV/EBITDA | 8.90 |
| Current Dividend Yield | 397.83% |
| Dividend Growth Rate (5Y) | 50.09% |
| Debt-to-Equity Ratio | 0.02 |
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% | $35.97 |
| Discounted Cash Flow (5Y) | 25% | $23.86 |
| Dividend Discount Model (Multi-Stage) | 20% | $21.15 |
| Dividend Discount Model (Stable) | 15% | $14.63 |
| Earnings Power Value | 10% | $13.19 |
| Weighted Average | 100% | $108.79 |
Based on our comprehensive valuation analysis, Michelmersh Brick Holdings PLC's weighted average intrinsic value is $108.79, which is approximately 2.9% below the current market price of $112.00.
Key investment considerations:
Given these factors, we believe Michelmersh Brick Holdings PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.