As of June 2, 2025, New Century AIM VCT PLC's estimated intrinsic value ranges from $16.23 to $159.34 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $33.01 | +29.4% |
| Discounted Cash Flow (5Y) | $29.76 | +16.7% |
| Dividend Discount Model (Multi-Stage) | $16.23 | -36.4% |
| Earnings Power Value | $159.34 | +524.9% |
Is New Century AIM VCT PLC (NCA.L) undervalued or overvalued?
With the current market price at $25.50, 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 New Century AIM 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 | 0.51 | 0.62 |
| Cost of equity | 7.1% | 9.3% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.6% | 6.7% |
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 | $30 | $2M | 73.7% |
| 10-Year Growth | $33 | $3M | 62.0% |
| 5-Year EBITDA | $24 | $2M | 67.9% |
| 10-Year EBITDA | $27 | $2M | 52.8% |
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 | $1M |
| Discount Rate (WACC) | 6.7% - 5.6% |
| Enterprise Value | $11M - $14M |
| Net Debt | $0M |
| Equity Value | $11M - $14M |
| Outstanding Shares | 0M |
| Fair Value | $145 - $174 |
| Selected Fair Value | $159.34 |
| Metric | Value |
|---|---|
| Market Capitalization | $2M |
| Enterprise Value | $2M |
| Trailing P/E | 0.00 |
| Forward P/E | 19.51 |
| Trailing EV/EBITDA | 12.40 |
| Current Dividend Yield | 6880.00% |
| Dividend Growth Rate (5Y) | 13.90% |
| Debt-to-Equity Ratio | 0.96 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $9.90 |
| Discounted Cash Flow (5Y) | 29% | $7.44 |
| Dividend Discount Model (Multi-Stage) | 24% | $3.25 |
| Earnings Power Value | 12% | $15.93 |
| Weighted Average | 100% | $42.97 |
Based on our comprehensive valuation analysis, New Century AIM VCT PLC's weighted average intrinsic value is $42.97, which is approximately 68.5% above the current market price of $25.50.
Key investment considerations:
Given these factors, we believe New Century AIM VCT PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.