As of June 15, 2025, Meredith Corp's estimated intrinsic value ranges from $54.85 to $138.66 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $125.07 | +111.7% |
| Discounted Cash Flow (5Y) | $106.19 | +79.8% |
| Dividend Discount Model (Multi-Stage) | $54.85 | -7.1% |
| Dividend Discount Model (Stable) | $60.51 | +2.4% |
| Earnings Power Value | $138.66 | +134.7% |
Is Meredith Corp (MDP) undervalued or overvalued?
With the current market price at $59.07, 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 Meredith Corp'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 | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1.17 | 1.26 |
| Cost of equity | 8.1% | 10.8% |
| Cost of debt | 5.9% | 6.1% |
| Tax rate | 18.6% | 27.2% |
| Debt/Equity ratio | 1.02 | 1.02 |
| After-tax WACC | 6.5% | 7.6% |
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 | $106 | $7,331M | 73.8% |
| 10-Year Growth | $125 | $8,194M | 55.8% |
| 5-Year EBITDA | $52 | $4,851M | 60.5% |
| 10-Year EBITDA | $79 | $6,076M | 40.4% |
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 | $615M |
| Discount Rate (WACC) | 7.6% - 6.5% |
| Enterprise Value | $8,121M - $9,510M |
| Net Debt | $2,479M |
| Equity Value | $5,642M - $7,032M |
| Outstanding Shares | 46M |
| Fair Value | $123 - $154 |
| Selected Fair Value | $138.66 |
| Metric | Value |
|---|---|
| Market Capitalization | $2699M |
| Enterprise Value | $5178M |
| Trailing P/E | 9.34 |
| Forward P/E | 9.27 |
| Trailing EV/EBITDA | 6.30 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -100.00% |
| Debt-to-Equity Ratio | 1.02 |
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% | $37.52 |
| Discounted Cash Flow (5Y) | 25% | $26.55 |
| Dividend Discount Model (Multi-Stage) | 20% | $10.97 |
| Dividend Discount Model (Stable) | 15% | $9.08 |
| Earnings Power Value | 10% | $13.87 |
| Weighted Average | 100% | $97.98 |
Based on our comprehensive valuation analysis, Meredith Corp's weighted average intrinsic value is $97.98, which is approximately 65.9% above the current market price of $59.07.
Key investment considerations:
Given these factors, we believe Meredith Corp is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.