As of October 2, 2025, Prime People PLC's estimated intrinsic value ranges from $29.22 to $132.43 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $68.43 | +2.1% |
| Discounted Cash Flow (5Y) | $49.76 | -25.7% |
| Dividend Discount Model (Multi-Stage) | $29.22 | -56.4% |
| Earnings Power Value | $132.43 | +97.7% |
Is Prime People PLC (PRP.L) undervalued or overvalued?
With the current market price at $67.00, 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 Prime People 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 0.77 | 1.19 |
| Cost of equity | 7.0% | 11.5% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 10.5% | 12.8% |
| Debt/Equity ratio | 0.36 | 0.36 |
| After-tax WACC | 6.1% | 9.5% |
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 | $50 | $5M | 83.3% |
| 10-Year Growth | $68 | $8M | 66.0% |
| 5-Year EBITDA | $27 | $2M | 62.8% |
| 10-Year EBITDA | $40 | $4M | 35.8% |
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 | $1M |
| Discount Rate (WACC) | 9.5% - 6.1% |
| Enterprise Value | $12M - $19M |
| Net Debt | $(1)M |
| Equity Value | $13M - $20M |
| Outstanding Shares | 0M |
| Fair Value | $106 - $159 |
| Selected Fair Value | $132.43 |
| Metric | Value |
|---|---|
| Market Capitalization | $9M |
| Enterprise Value | $7M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 3.00 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -100.00% |
| Debt-to-Equity Ratio | 0.36 |
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% | $20.53 |
| Discounted Cash Flow (5Y) | 29% | $12.44 |
| Dividend Discount Model (Multi-Stage) | 24% | $5.84 |
| Earnings Power Value | 12% | $13.24 |
| Weighted Average | 100% | $61.25 |
Based on our comprehensive valuation analysis, Prime People PLC's intrinsic value is $61.25, which is approximately 8.6% below the current market price of $67.00.
Key investment considerations:
Given these factors, we believe Prime People PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.