What is RMS.L's Intrinsic value?

Remote Monitored Systems PLC (RMS.L) Intrinsic Value Analysis

Executive Summary

As of December 15, 2025, Remote Monitored Systems PLC's estimated intrinsic value ranges from $0.05 to $0.05 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.05 -92.4%

Is Remote Monitored Systems PLC (RMS.L) undervalued or overvalued?

With the current market price at $0.72, the stock appears to be significantly overvalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Remote Monitored Systems PLC's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

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 0.5 0.59
Cost of equity 5.6% 7.7%
Cost of debt 5.0% 5.0%
Tax rate 6.4% 11.1%
Debt/Equity ratio 0 0
After-tax WACC 5.6% 7.7%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $(0)M
Discount Rate (WACC) 7.7% - 5.6%
Enterprise Value $(3)M - $(4)M
Net Debt $(4)M
Equity Value $1M - $0M
Outstanding Shares 11M
Fair Value $0 - $0
Selected Fair Value $0.05

Key Financial Metrics

Metric Value
Market Capitalization $8M
Enterprise Value $4M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 10.75
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.00

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Earnings Power Value 100% $0.01
Weighted Average 100% $0.05

Investment Conclusion

Based on our comprehensive valuation analysis, Remote Monitored Systems PLC's intrinsic value is $0.05, which is approximately 92.4% below the current market price of $0.72.

Key investment considerations:

  • Strong projected earnings growth (-1471% to -192% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.00)

Given these factors, we believe Remote Monitored Systems PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.