As of June 19, 2025, Renewi PLC's estimated intrinsic value ranges from $510.48 to $2141.04 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $1095.08 | +26.2% |
| Discounted Cash Flow (5Y) | $1251.17 | +44.1% |
| Dividend Discount Model (Multi-Stage) | $510.48 | -41.2% |
| Earnings Power Value | $2141.04 | +146.7% |
Is Renewi PLC (RWI.L) undervalued or overvalued?
With the current market price at $868.00, 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 Renewi 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 | 0.93 |
| Cost of equity | 7.4% | 11.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 23.4% | 25.0% |
| Debt/Equity ratio | 0.85 | 0.85 |
| After-tax WACC | 5.8% | 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 | $1,470 | $1,772M | 83.4% |
| 10-Year Growth | $1,286 | $1,625M | 67.6% |
| 5-Year EBITDA | $517 | $1,008M | 70.9% |
| 10-Year EBITDA | $630 | $1,099M | 52.2% |
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 | $174M |
| Discount Rate (WACC) | 7.9% - 5.8% |
| Enterprise Value | $2,194M - $3,025M |
| Net Debt | $594M |
| Equity Value | $1,600M - $2,430M |
| Outstanding Shares | 1M |
| Fair Value | $1,996 - $3,034 |
| Selected Fair Value | $2141.04 |
| Metric | Value |
|---|---|
| Market Capitalization | $695M |
| Enterprise Value | $1202M |
| Trailing P/E | 0.00 |
| Forward P/E | 19.37 |
| Trailing EV/EBITDA | 5.45 |
| Current Dividend Yield | 57.53% |
| Dividend Growth Rate (5Y) | 23.91% |
| Debt-to-Equity Ratio | 0.85 |
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% | $328.52 |
| Discounted Cash Flow (5Y) | 29% | $312.79 |
| Dividend Discount Model (Multi-Stage) | 24% | $102.10 |
| Earnings Power Value | 12% | $214.10 |
| Weighted Average | 100% | $1126.49 |
Based on our comprehensive valuation analysis, Renewi PLC's weighted average intrinsic value is $1126.49, which is approximately 29.8% above the current market price of $868.00.
Key investment considerations:
Given these factors, we believe Renewi PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.