As of December 15, 2025, Next PLC's estimated intrinsic value ranges from $8385.12 to $15281.15 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $15281.15 | +14.3% |
| Discounted Cash Flow (5Y) | $12441.19 | -6.9% |
| Dividend Discount Model (Multi-Stage) | $11184.02 | -16.3% |
| Dividend Discount Model (Stable) | $10380.08 | -22.4% |
| Earnings Power Value | $8385.12 | -37.3% |
Is Next PLC (NXT.L) undervalued or overvalued?
With the current market price at $13370.00, 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 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 | 0.48 | 0.54 |
| Cost of equity | 6.9% | 8.7% |
| Cost of debt | 4.1% | 4.7% |
| Tax rate | 18.0% | 19.4% |
| Debt/Equity ratio | 0.11 | 0.11 |
| After-tax WACC | 6.5% | 8.2% |
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 | $12,441 | $16,912M | 79.7% |
| 10-Year Growth | $15,281 | $20,419M | 64.1% |
| 5-Year EBITDA | $10,147 | $14,079M | 75.6% |
| 10-Year EBITDA | $12,583 | $17,087M | 57.0% |
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) | 8.2% - 6.5% |
| Enterprise Value | $10,505M - $13,301M |
| Net Debt | $1,548M |
| Equity Value | $8,957M - $11,753M |
| Outstanding Shares | 1M |
| Fair Value | $7,253 - $9,517 |
| Selected Fair Value | $8385.12 |
| Metric | Value |
|---|---|
| Market Capitalization | $16511M |
| Enterprise Value | $18059M |
| Trailing P/E | 20.83 |
| Forward P/E | 18.61 |
| Trailing EV/EBITDA | 8.35 |
| Current Dividend Yield | 183.07% |
| Dividend Growth Rate (5Y) | 5.50% |
| Debt-to-Equity Ratio | 0.11 |
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% | $4584.34 |
| Discounted Cash Flow (5Y) | 25% | $3110.30 |
| Dividend Discount Model (Multi-Stage) | 20% | $2236.80 |
| Dividend Discount Model (Stable) | 15% | $1557.01 |
| Earnings Power Value | 10% | $838.51 |
| Weighted Average | 100% | $12326.97 |
Based on our comprehensive valuation analysis, Next PLC's intrinsic value is $12326.97, which is approximately 7.8% below the current market price of $13370.00.
Key investment considerations:
Given these factors, we believe Next PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.