What is NSF.L's Intrinsic value?

Non-Standard Finance PLC (NSF.L) Intrinsic Value Analysis

Executive Summary

As of December 15, 2025, Non-Standard Finance PLC's estimated intrinsic value ranges from $103.95 to $103.95 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $103.95 +259780.8%

Is Non-Standard Finance PLC (NSF.L) undervalued or overvalued?

With the current market price at $0.04, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Non-Standard Finance PLC's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

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 53.98 239.93
Cost of equity 326.8% 1679.7%
Cost of debt 6.4% 12.5%
Tax rate 0.2% 0.3%
Debt/Equity ratio 2100.1 2100.1
After-tax WACC 6.5% 13.3%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $49M
Discount Rate (WACC) 13.3% - 6.5%
Enterprise Value $366M - $742M
Net Debt $230M
Equity Value $137M - $513M
Outstanding Shares 3M
Fair Value $44 - $164
Selected Fair Value $103.95

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $230M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 5.50
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) -100.00%
Debt-to-Equity Ratio 2100.10

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Earnings Power Value 100% $10.40
Weighted Average 100% $103.95

Investment Conclusion

Based on our comprehensive valuation analysis, Non-Standard Finance PLC's intrinsic value is $103.95, which is approximately 259780.8% above the current market price of $0.04.

Key investment considerations:

  • Strong projected earnings growth (-57% to -57% margin)
  • Consistent cash flow generation

Given these factors, we believe Non-Standard Finance PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.