As of May 28, 2025, Mobeus Income & Growth 2 VCT PLC's estimated intrinsic value ranges from $11.78 to $98.27 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $58.09 | +1.9% |
| Discounted Cash Flow (5Y) | $55.04 | -3.4% |
| Dividend Discount Model (Multi-Stage) | $77.34 | +35.7% |
| Dividend Discount Model (Stable) | $11.78 | -79.3% |
| Earnings Power Value | $98.27 | +72.4% |
Is Mobeus Income & Growth 2 VCT PLC (MIG.L) undervalued or overvalued?
With the current market price at $57.00, 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 Mobeus Income & Growth 2 VCT 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 | 1.55 | 1.65 |
| Cost of equity | 13.3% | 16.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.7% | 10.3% |
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 | $55 | $50M | 71.4% |
| 10-Year Growth | $58 | $53M | 50.3% |
| 5-Year EBITDA | $84 | $77M | 81.5% |
| 10-Year EBITDA | $80 | $73M | 64.1% |
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 | $9M |
| Discount Rate (WACC) | 10.3% - 8.7% |
| Enterprise Value | $83M - $98M |
| Net Debt | $(2)M |
| Equity Value | $85M - $100M |
| Outstanding Shares | 1M |
| Fair Value | $90 - $106 |
| Selected Fair Value | $98.27 |
| Metric | Value |
|---|---|
| Market Capitalization | $54M |
| Enterprise Value | $52M |
| Trailing P/E | 32.11 |
| Forward P/E | 14.58 |
| Trailing EV/EBITDA | 19.55 |
| Current Dividend Yield | 2182.37% |
| Dividend Growth Rate (5Y) | 47.70% |
| Debt-to-Equity Ratio | 1.11 |
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% | $17.43 |
| Discounted Cash Flow (5Y) | 25% | $13.76 |
| Dividend Discount Model (Multi-Stage) | 20% | $15.47 |
| Dividend Discount Model (Stable) | 15% | $1.77 |
| Earnings Power Value | 10% | $9.83 |
| Weighted Average | 100% | $58.25 |
Based on our comprehensive valuation analysis, Mobeus Income & Growth 2 VCT PLC's weighted average intrinsic value is $58.25, which is approximately 2.2% above the current market price of $57.00.
Key investment considerations:
Given these factors, we believe Mobeus Income & Growth 2 VCT PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.