As of May 27, 2025, Polar Capital Global Healthcare Trust PLC's estimated intrinsic value ranges from $250.04 to $630.37 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $630.37 | +100.1% |
| Discounted Cash Flow (5Y) | $542.17 | +72.1% |
| Dividend Discount Model (Multi-Stage) | $359.89 | +14.3% |
| Dividend Discount Model (Stable) | $382.98 | +21.6% |
| Earnings Power Value | $250.04 | -20.6% |
Is Polar Capital Global Healthcare Trust PLC (PCGH.L) undervalued or overvalued?
With the current market price at $315.00, 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 Polar Capital Global Healthcare Trust 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 | 1.02 | 1.05 |
| Cost of equity | 10.1% | 12.3% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 1.4% | 1.9% |
| Debt/Equity ratio | 0 | 0 |
| After-tax WACC | 10.1% | 12.3% |
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 | $542 | $684M | 60.0% |
| 10-Year Growth | $630 | $796M | 39.5% |
| 5-Year EBITDA | $429 | $539M | 49.2% |
| 10-Year EBITDA | $543 | $685M | 29.7% |
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 | $34M |
| Discount Rate (WACC) | 12.3% - 10.1% |
| Enterprise Value | $279M - $342M |
| Net Debt | $(9)M |
| Equity Value | $288M - $351M |
| Outstanding Shares | 1M |
| Fair Value | $226 - $274 |
| Selected Fair Value | $250.04 |
| Metric | Value |
|---|---|
| Market Capitalization | $403M |
| Enterprise Value | $393M |
| Trailing P/E | 6.41 |
| Forward P/E | 6.14 |
| Trailing EV/EBITDA | 6.00 |
| Current Dividend Yield | 72.28% |
| Dividend Growth Rate (5Y) | 3.36% |
| Debt-to-Equity Ratio | 0.00 |
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% | $189.11 |
| Discounted Cash Flow (5Y) | 25% | $135.54 |
| Dividend Discount Model (Multi-Stage) | 20% | $71.98 |
| Dividend Discount Model (Stable) | 15% | $57.45 |
| Earnings Power Value | 10% | $25.00 |
| Weighted Average | 100% | $479.08 |
Based on our comprehensive valuation analysis, Polar Capital Global Healthcare Trust PLC's weighted average intrinsic value is $479.08, which is approximately 52.1% above the current market price of $315.00.
Key investment considerations:
Given these factors, we believe Polar Capital Global Healthcare Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.