As of June 15, 2025, Porvair PLC's estimated intrinsic value ranges from $499.50 to $696.48 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $696.48 | -16.3% |
| Discounted Cash Flow (5Y) | $592.32 | -28.8% |
| Dividend Discount Model (Multi-Stage) | $499.50 | -40.0% |
| Dividend Discount Model (Stable) | $513.90 | -38.2% |
| Earnings Power Value | $504.16 | -39.4% |
Is Porvair PLC (PRV.L) undervalued or overvalued?
With the current market price at $832.00, 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 Porvair 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 | 0.57 | 0.64 |
| Cost of equity | 7.4% | 9.5% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 20.6% | 21.0% |
| Debt/Equity ratio | 0.05 | 0.05 |
| After-tax WACC | 7.2% | 9.2% |
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 | $592 | $276M | 73.5% |
| 10-Year Growth | $696 | $324M | 57.5% |
| 5-Year EBITDA | $509 | $238M | 69.2% |
| 10-Year EBITDA | $618 | $288M | 52.1% |
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 | $19M |
| Discount Rate (WACC) | 9.2% - 7.2% |
| Enterprise Value | $207M - $264M |
| Net Debt | $4M |
| Equity Value | $204M - $260M |
| Outstanding Shares | 0M |
| Fair Value | $443 - $566 |
| Selected Fair Value | $504.16 |
| Metric | Value |
|---|---|
| Market Capitalization | $383M |
| Enterprise Value | $386M |
| Trailing P/E | 23.23 |
| Forward P/E | 21.60 |
| Trailing EV/EBITDA | 7.25 |
| Current Dividend Yield | 73.45% |
| Dividend Growth Rate (5Y) | 5.69% |
| Debt-to-Equity Ratio | 0.05 |
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% | $208.94 |
| Discounted Cash Flow (5Y) | 25% | $148.08 |
| Dividend Discount Model (Multi-Stage) | 20% | $99.90 |
| Dividend Discount Model (Stable) | 15% | $77.08 |
| Earnings Power Value | 10% | $50.42 |
| Weighted Average | 100% | $584.43 |
Based on our comprehensive valuation analysis, Porvair PLC's weighted average intrinsic value is $584.43, which is approximately 29.8% below the current market price of $832.00.
Key investment considerations:
Given these factors, we believe Porvair PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.