As of May 22, 2025, Network International Holdings PLC's estimated intrinsic value ranges from $178.36 to $303.56 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $303.56 | -24.0% |
| Discounted Cash Flow (5Y) | $203.79 | -49.0% |
| Dividend Discount Model (Multi-Stage) | $178.36 | -55.3% |
| Dividend Discount Model (Stable) | $206.27 | -48.4% |
| Earnings Power Value | $197.76 | -50.5% |
Is Network International Holdings PLC (NETW.L) undervalued or overvalued?
With the current market price at $399.40, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Network International Holdings 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 | 0.59 | 0.88 |
| Cost of equity | 7.5% | 11.1% |
| Cost of debt | 4.0% | 5.2% |
| Tax rate | 13.0% | 15.0% |
| Debt/Equity ratio | 0.16 | 0.16 |
| After-tax WACC | 7.0% | 10.2% |
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 | $271 | $1,735M | 83.0% |
| 10-Year Growth | $403 | $2,440M | 70.5% |
| 5-Year EBITDA | $310 | $1,946M | 84.9% |
| 10-Year EBITDA | $384 | $2,338M | 69.2% |
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 | $140M |
| Discount Rate (WACC) | 10.2% - 7.0% |
| Enterprise Value | $1,372M - $2,012M |
| Net Debt | $293M |
| Equity Value | $1,079M - $1,719M |
| Outstanding Shares | 5M |
| Fair Value | $203 - $323 |
| Selected Fair Value | $197.76 |
| Metric | Value |
|---|---|
| Market Capitalization | $2127M |
| Enterprise Value | $2348M |
| Trailing P/E | 43.00 |
| Forward P/E | 38.74 |
| Trailing EV/EBITDA | 9.35 |
| Current Dividend Yield | 62.96% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.16 |
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% | $91.07 |
| Discounted Cash Flow (5Y) | 25% | $50.95 |
| Dividend Discount Model (Multi-Stage) | 20% | $35.67 |
| Dividend Discount Model (Stable) | 15% | $30.94 |
| Earnings Power Value | 10% | $19.78 |
| Weighted Average | 100% | $228.40 |
Based on our comprehensive valuation analysis, Network International Holdings PLC's weighted average intrinsic value is $228.40, which is approximately 42.8% below the current market price of $399.40.
Key investment considerations:
Given these factors, we believe Network International Holdings PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.