As of May 28, 2025, OPG Power Ventures PLC's estimated intrinsic value ranges from $7.56 to $34.35 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $24.08 | +372.2% |
| Discounted Cash Flow (5Y) | $23.54 | +361.6% |
| Dividend Discount Model (Multi-Stage) | $8.45 | +65.7% |
| Dividend Discount Model (Stable) | $7.56 | +48.2% |
| Earnings Power Value | $34.35 | +573.6% |
Is OPG Power Ventures PLC (OPG.L) undervalued or overvalued?
With the current market price at $5.10, 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 OPG Power Ventures 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 | 1.23 | 1.32 |
| Cost of equity | 11.4% | 14.2% |
| Cost of debt | 9.2% | 12.7% |
| Tax rate | 31.2% | 34.5% |
| Debt/Equity ratio | 1.47 | 1.47 |
| After-tax WACC | 8.4% | 10.7% |
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 | $24 | $100M | 71.4% |
| 10-Year Growth | $24 | $102M | 46.0% |
| 5-Year EBITDA | $18 | $80M | 64.2% |
| 10-Year EBITDA | $21 | $91M | 39.7% |
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 | $13M |
| Discount Rate (WACC) | 10.7% - 8.4% |
| Enterprise Value | $125M - $159M |
| Net Debt | $7M |
| Equity Value | $118M - $152M |
| Outstanding Shares | 4M |
| Fair Value | $30 - $39 |
| Selected Fair Value | $34.35 |
| Metric | Value |
|---|---|
| Market Capitalization | $20M |
| Enterprise Value | $27M |
| Trailing P/E | 4.60 |
| Forward P/E | 3.66 |
| Trailing EV/EBITDA | 5.05 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.47 |
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% | $7.22 |
| Discounted Cash Flow (5Y) | 25% | $5.89 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.69 |
| Dividend Discount Model (Stable) | 15% | $1.13 |
| Earnings Power Value | 10% | $3.44 |
| Weighted Average | 100% | $19.37 |
Based on our comprehensive valuation analysis, OPG Power Ventures PLC's weighted average intrinsic value is $19.37, which is approximately 279.8% above the current market price of $5.10.
Key investment considerations:
Given these factors, we believe OPG Power Ventures PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.