As of April 3, 2026, Next PLC's estimated intrinsic value ranges from $8897.61 to $18604.40 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $18604.40 | +43.7% |
| Discounted Cash Flow (5Y) | $15725.41 | +21.4% |
| Dividend Discount Model (Multi-Stage) | $13568.45 | +4.8% |
| Dividend Discount Model (Stable) | $13702.53 | +5.8% |
| Earnings Power Value | $8897.61 | -31.3% |
Is Next PLC (NXT.L) undervalued or overvalued?
With the current market price at $12950.00, the stock appears to be moderately 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 Next 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 | 0.59 |
| Cost of equity | 7.1% | 9.1% |
| Cost of debt | 4.1% | 4.7% |
| Tax rate | 18.0% | 19.4% |
| Debt/Equity ratio | 0.13 | 0.13 |
| After-tax WACC | 6.6% | 8.5% |
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 | $15,725 | $19,375M | 82.3% |
| 10-Year Growth | $18,604 | $22,638M | 67.8% |
| 5-Year EBITDA | $8,630 | $11,332M | 69.8% |
| 10-Year EBITDA | $11,394 | $14,465M | 49.7% |
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 | $865M |
| Discount Rate (WACC) | 8.5% - 6.6% |
| Enterprise Value | $10,224M - $13,046M |
| Net Debt | $1,548M |
| Equity Value | $8,676M - $11,498M |
| Outstanding Shares | 1M |
| Fair Value | $7,653 - $10,142 |
| Selected Fair Value | $8897.61 |
| Metric | Value |
|---|---|
| Market Capitalization | $14681M |
| Enterprise Value | $16229M |
| Trailing P/E | 18.52 |
| Forward P/E | 16.55 |
| Trailing EV/EBITDA | 6.25 |
| Current Dividend Yield | 183.07% |
| Dividend Growth Rate (5Y) | 5.50% |
| Debt-to-Equity Ratio | 0.13 |
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% | $5581.32 |
| Discounted Cash Flow (5Y) | 25% | $3931.35 |
| Dividend Discount Model (Multi-Stage) | 20% | $2713.69 |
| Dividend Discount Model (Stable) | 15% | $2055.38 |
| Earnings Power Value | 10% | $889.76 |
| Weighted Average | 100% | $15171.50 |
Based on our comprehensive valuation analysis, Next PLC's intrinsic value is $15171.50, which is approximately 17.2% above the current market price of $12950.00.
Key investment considerations:
Given these factors, we believe Next PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.