As of June 5, 2025, Manchester And London Investment Trust PLC's estimated intrinsic value ranges from $266.72 to $2101.25 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $733.06 | -1.2% |
| Discounted Cash Flow (5Y) | $707.13 | -4.7% |
| Dividend Discount Model (Multi-Stage) | $2101.25 | +183.2% |
| Dividend Discount Model (Stable) | $1660.00 | +123.7% |
| Earnings Power Value | $266.72 | -64.1% |
Is Manchester And London Investment Trust PLC (MNL.L) undervalued or overvalued?
With the current market price at $742.00, 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 Manchester And London Investment Trust 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 | 1.34 | 1.71 |
| Cost of equity | 12.0% | 16.9% |
| Cost of debt | 4.6% | 4.6% |
| Tax rate | 0.2% | 0.2% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.3% | 10.7% |
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 | $707 | $253M | 71.8% |
| 10-Year Growth | $733 | $263M | 50.3% |
| 5-Year EBITDA | $458 | $157M | 54.7% |
| 10-Year EBITDA | $552 | $193M | 32.4% |
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 | $8M |
| Discount Rate (WACC) | 10.7% - 8.3% |
| Enterprise Value | $73M - $95M |
| Net Debt | $(18)M |
| Equity Value | $91M - $113M |
| Outstanding Shares | 0M |
| Fair Value | $239 - $295 |
| Selected Fair Value | $266.72 |
| Metric | Value |
|---|---|
| Market Capitalization | $284M |
| Enterprise Value | $266M |
| Trailing P/E | 3.22 |
| Forward P/E | 2.19 |
| Trailing EV/EBITDA | 6.35 |
| Current Dividend Yield | 300.59% |
| Dividend Growth Rate (5Y) | 14.10% |
| Debt-to-Equity Ratio | 1.08 |
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% | $219.92 |
| Discounted Cash Flow (5Y) | 25% | $176.78 |
| Dividend Discount Model (Multi-Stage) | 20% | $420.25 |
| Dividend Discount Model (Stable) | 15% | $249.00 |
| Earnings Power Value | 10% | $26.67 |
| Weighted Average | 100% | $1092.63 |
Based on our comprehensive valuation analysis, Manchester And London Investment Trust PLC's weighted average intrinsic value is $1092.63, which is approximately 47.3% above the current market price of $742.00.
Key investment considerations:
Given these factors, we believe Manchester And London Investment Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.