As of October 1, 2025, Perrigo Company PLC's estimated intrinsic value ranges from $6.39 to $16.30 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $16.30 | -26.8% |
| Discounted Cash Flow (5Y) | $6.39 | -71.3% |
| Dividend Discount Model (Multi-Stage) | $7.34 | -67.0% |
| Earnings Power Value | $15.62 | -29.9% |
Is Perrigo Company PLC (PRGO) undervalued or overvalued?
With the current market price at $22.27, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Perrigo Company 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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.84 | 1.4 |
| Cost of equity | 7.7% | 12.7% |
| Cost of debt | 5.7% | 9.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.24 | 1.24 |
| After-tax WACC | 5.8% | 9.4% |
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 | $6 | $4,077M | 80.7% |
| 10-Year Growth | $16 | $5,440M | 65.2% |
| 5-Year EBITDA | $20 | $2,763M | 71.6% |
| 10-Year EBITDA | $28 | $3,845M | 50.8% |
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 | $382M |
| Discount Rate (WACC) | 9.4% - 5.8% |
| Enterprise Value | $4,084M - $6,609M |
| Net Debt | $3,198M |
| Equity Value | $887M - $3,412M |
| Outstanding Shares | 138M |
| Fair Value | $6 - $25 |
| Selected Fair Value | $15.62 |
| Metric | Value |
|---|---|
| Market Capitalization | $3064M |
| Enterprise Value | $3064M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 5.05 |
| Current Dividend Yield | 539.79% |
| Dividend Growth Rate (5Y) | 6.29% |
| Debt-to-Equity Ratio | 1.24 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $4.89 |
| Discounted Cash Flow (5Y) | 29% | $1.60 |
| Dividend Discount Model (Multi-Stage) | 24% | $1.47 |
| Earnings Power Value | 12% | $1.56 |
| Weighted Average | 100% | $11.20 |
Based on our comprehensive valuation analysis, Perrigo Company PLC's intrinsic value is $11.20, which is approximately 49.7% below the current market price of $22.27.
Key investment considerations:
Given these factors, we believe Perrigo Company PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.