As of May 29, 2025, Northbridge Industrial Services PLC's estimated intrinsic value ranges from $103.96 to $404.56 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $216.68 | +9.4% |
| Discounted Cash Flow (5Y) | $133.49 | -32.6% |
| Dividend Discount Model (Multi-Stage) | $155.33 | -21.5% |
| Dividend Discount Model (Stable) | $103.96 | -47.5% |
| Earnings Power Value | $404.56 | +104.3% |
Is Northbridge Industrial Services PLC (NBI.L) undervalued or overvalued?
With the current market price at $198.00, 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 Northbridge Industrial Services 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.04 | 1.16 |
| Cost of equity | 8.5% | 11.3% |
| Cost of debt | 7.0% | 7.2% |
| Tax rate | 18.4% | 26.0% |
| Debt/Equity ratio | 0.12 | 0.12 |
| After-tax WACC | 8.2% | 10.6% |
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 | $133 | $42M | 78.4% |
| 10-Year Growth | $217 | $67M | 60.7% |
| 5-Year EBITDA | $160 | $50M | 81.8% |
| 10-Year EBITDA | $221 | $68M | 61.3% |
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) | 10.6% - 8.2% |
| Enterprise Value | $106M - $138M |
| Net Debt | $3M |
| Equity Value | $104M - $135M |
| Outstanding Shares | 0M |
| Fair Value | $351 - $458 |
| Selected Fair Value | $404.56 |
| Metric | Value |
|---|---|
| Market Capitalization | $58M |
| Enterprise Value | $61M |
| Trailing P/E | 0.00 |
| Forward P/E | 20.24 |
| Trailing EV/EBITDA | 8.45 |
| Current Dividend Yield | 48.31% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.12 |
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% | $65.00 |
| Discounted Cash Flow (5Y) | 25% | $33.37 |
| Dividend Discount Model (Multi-Stage) | 20% | $31.07 |
| Dividend Discount Model (Stable) | 15% | $15.59 |
| Earnings Power Value | 10% | $40.46 |
| Weighted Average | 100% | $185.49 |
Based on our comprehensive valuation analysis, Northbridge Industrial Services PLC's weighted average intrinsic value is $185.49, which is approximately 6.3% below the current market price of $198.00.
Key investment considerations:
Given these factors, we believe Northbridge Industrial Services PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.