As of August 7, 2025, Redde Northgate PLC's estimated intrinsic value ranges from $539.91 to $1584.32 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $947.65 | +156.8% |
| Discounted Cash Flow (5Y) | $840.70 | +127.8% |
| Dividend Discount Model (Multi-Stage) | $590.12 | +59.9% |
| Dividend Discount Model (Stable) | $539.91 | +46.3% |
| Earnings Power Value | $1584.32 | +329.4% |
Is Redde Northgate PLC (REDD.L) undervalued or overvalued?
With the current market price at $369.00, 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 Redde Northgate 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 | 3.7% | 4.2% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.87 | 1.06 |
| Cost of equity | 8.9% | 12.2% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 18.2% | 22.4% |
| Debt/Equity ratio | 0.78 | 0.78 |
| After-tax WACC | 6.5% | 8.4% |
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 | $841 | $2,607M | 72.3% |
| 10-Year Growth | $948 | $2,843M | 53.3% |
| 5-Year EBITDA | $352 | $1,530M | 52.8% |
| 10-Year EBITDA | $558 | $1,985M | 33.1% |
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 | $310M |
| Discount Rate (WACC) | 8.4% - 6.5% |
| Enterprise Value | $3,692M - $4,799M |
| Net Debt | $755M |
| Equity Value | $2,937M - $4,044M |
| Outstanding Shares | 2M |
| Fair Value | $1,333 - $1,836 |
| Selected Fair Value | $1584.32 |
| Metric | Value |
|---|---|
| Market Capitalization | $813M |
| Enterprise Value | $1568M |
| Trailing P/E | 5.84 |
| Forward P/E | 5.18 |
| Trailing EV/EBITDA | 4.30 |
| Current Dividend Yield | 573.22% |
| Dividend Growth Rate (5Y) | 9.99% |
| Debt-to-Equity Ratio | 0.78 |
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% | $284.29 |
| Discounted Cash Flow (5Y) | 25% | $210.18 |
| Dividend Discount Model (Multi-Stage) | 20% | $118.02 |
| Dividend Discount Model (Stable) | 15% | $80.99 |
| Earnings Power Value | 10% | $158.43 |
| Weighted Average | 100% | $851.91 |
Based on our comprehensive valuation analysis, Redde Northgate PLC's intrinsic value is $851.91, which is approximately 130.9% above the current market price of $369.00.
Key investment considerations:
Given these factors, we believe Redde Northgate PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.