As of May 29, 2025, Mediclinic International PLC's estimated intrinsic value ranges from $400.11 to $2447.26 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $523.85 | +4.6% |
| Discounted Cash Flow (5Y) | $507.12 | +1.2% |
| Dividend Discount Model (Multi-Stage) | $400.11 | -20.1% |
| Dividend Discount Model (Stable) | $426.35 | -14.9% |
| Earnings Power Value | $2447.26 | +388.5% |
Is Mediclinic International PLC (MDC.L) undervalued or overvalued?
With the current market price at $501.00, 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 Mediclinic International 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 | 0.38 | 0.45 |
| Cost of equity | 6.3% | 8.1% |
| Cost of debt | 4.0% | 5.7% |
| Tax rate | 7.3% | 13.0% |
| Debt/Equity ratio | 0.7 | 0.7 |
| After-tax WACC | 5.2% | 6.8% |
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 | $507 | $6,056M | 84.7% |
| 10-Year Growth | $524 | $6,180M | 69.4% |
| 5-Year EBITDA | $29 | $2,518M | 63.1% |
| 10-Year EBITDA | $127 | $3,245M | 41.7% |
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 | $1,208M |
| Discount Rate (WACC) | 6.8% - 5.2% |
| Enterprise Value | $17,671M - $23,147M |
| Net Debt | $2,304M |
| Equity Value | $15,367M - $20,843M |
| Outstanding Shares | 7M |
| Fair Value | $2,077 - $2,817 |
| Selected Fair Value | $2447.26 |
| Metric | Value |
|---|---|
| Market Capitalization | $3706M |
| Enterprise Value | $6010M |
| Trailing P/E | 21.93 |
| Forward P/E | 19.46 |
| Trailing EV/EBITDA | 6.90 |
| Current Dividend Yield | 59.36% |
| Dividend Growth Rate (5Y) | -27.58% |
| Debt-to-Equity Ratio | 0.70 |
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% | $157.15 |
| Discounted Cash Flow (5Y) | 25% | $126.78 |
| Dividend Discount Model (Multi-Stage) | 20% | $80.02 |
| Dividend Discount Model (Stable) | 15% | $63.95 |
| Earnings Power Value | 10% | $244.73 |
| Weighted Average | 100% | $672.63 |
Based on our comprehensive valuation analysis, Mediclinic International PLC's weighted average intrinsic value is $672.63, which is approximately 34.3% above the current market price of $501.00.
Key investment considerations:
Given these factors, we believe Mediclinic International PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.