As of May 23, 2025, RM Secured Direct Lending PLC's estimated intrinsic value ranges from $43.98 to $203.51 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $51.65 | -45.0% |
| Discounted Cash Flow (5Y) | $49.27 | -47.6% |
| Dividend Discount Model (Multi-Stage) | $43.98 | -53.2% |
| Dividend Discount Model (Stable) | $203.51 | +116.5% |
| Earnings Power Value | $56.19 | -40.2% |
Is RM Secured Direct Lending PLC (RMDL.L) undervalued or overvalued?
With the current market price at $94.00, 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 RM Secured Direct Lending 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 | 0.67 | 0.74 |
| Cost of equity | 6.5% | 8.6% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 0.3% | 0.4% |
| Debt/Equity ratio | 0.2 | 0.2 |
| After-tax WACC | 6.1% | 7.9% |
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 | $49 | $78M | 82.1% |
| 10-Year Growth | $52 | $81M | 67.7% |
| 5-Year EBITDA | $18 | $41M | 66.3% |
| 10-Year EBITDA | $25 | $50M | 47.3% |
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 | $6M |
| Discount Rate (WACC) | 7.9% - 6.1% |
| Enterprise Value | $75M - $97M |
| Net Debt | $20M |
| Equity Value | $55M - $77M |
| Outstanding Shares | 1M |
| Fair Value | $47 - $66 |
| Selected Fair Value | $56.19 |
| Metric | Value |
|---|---|
| Market Capitalization | $110M |
| Enterprise Value | $130M |
| Trailing P/E | 10.62 |
| Forward P/E | 47.73 |
| Trailing EV/EBITDA | 11.00 |
| Current Dividend Yield | 1425.05% |
| Dividend Growth Rate (5Y) | 84.88% |
| Debt-to-Equity Ratio | 0.20 |
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% | $15.50 |
| Discounted Cash Flow (5Y) | 25% | $12.32 |
| Dividend Discount Model (Multi-Stage) | 20% | $8.80 |
| Dividend Discount Model (Stable) | 15% | $30.53 |
| Earnings Power Value | 10% | $5.62 |
| Weighted Average | 100% | $72.75 |
Based on our comprehensive valuation analysis, RM Secured Direct Lending PLC's weighted average intrinsic value is $72.75, which is approximately 22.6% below the current market price of $94.00.
Key investment considerations:
Given these factors, we believe RM Secured Direct Lending PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.