As of May 31, 2025, Quilter PLC's estimated intrinsic value ranges from $2.13 to $1814.26 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $105.81 | -28.3% |
| Discounted Cash Flow (5Y) | $105.24 | -28.7% |
| Dividend Discount Model (Multi-Stage) | $2.13 | -98.6% |
| Earnings Power Value | $1814.26 | +1130.0% |
Is Quilter PLC (QLT.L) undervalued or overvalued?
With the current market price at $147.50, 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 Quilter 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 | 1.03 | 1.17 |
| Cost of equity | 10.2% | 13.1% |
| Cost of debt | 4.6% | 5.5% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 0.14 | 0.14 |
| After-tax WACC | 9.4% | 12.1% |
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 | $105 | $(213)M | 67.6% |
| 10-Year Growth | $106 | $(205)M | 45.0% |
| 5-Year EBITDA | $113 | $(99)M | 30.4% |
| 10-Year EBITDA | $111 | $(132)M | 14.7% |
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 | $2,486M |
| Discount Rate (WACC) | 12.1% - 9.4% |
| Enterprise Value | $20,539M - $26,476M |
| Net Debt | $(1,674)M |
| Equity Value | $22,213M - $28,150M |
| Outstanding Shares | 14M |
| Fair Value | $1,600 - $2,028 |
| Selected Fair Value | $1814.26 |
| Metric | Value |
|---|---|
| Market Capitalization | $2047M |
| Enterprise Value | $373M |
| Trailing P/E | 0.00 |
| Forward P/E | 544.25 |
| Trailing EV/EBITDA | 7.60 |
| Current Dividend Yield | 359.75% |
| Dividend Growth Rate (5Y) | -2.57% |
| Debt-to-Equity Ratio | 0.14 |
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% | $31.74 |
| Discounted Cash Flow (5Y) | 29% | $26.31 |
| Dividend Discount Model (Multi-Stage) | 24% | $0.43 |
| Earnings Power Value | 12% | $181.43 |
| Weighted Average | 100% | $282.24 |
Based on our comprehensive valuation analysis, Quilter PLC's weighted average intrinsic value is $282.24, which is approximately 91.3% above the current market price of $147.50.
Key investment considerations:
Given these factors, we believe Quilter PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.