As of May 22, 2025, Sourcebio International PLC's estimated intrinsic value ranges from $88.45 to $430.09 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $157.30 | +36.8% |
| Discounted Cash Flow (5Y) | $156.57 | +36.1% |
| Dividend Discount Model (Multi-Stage) | $88.45 | -23.1% |
| Dividend Discount Model (Stable) | $161.51 | +40.4% |
| Earnings Power Value | $430.09 | +274.0% |
Is Sourcebio International PLC (SBI.L) undervalued or overvalued?
With the current market price at $115.00, 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 Sourcebio International 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 | 0.72 | 1 |
| Cost of equity | 8.3% | 12.0% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 1.1% | 3.7% |
| Debt/Equity ratio | 0.18 | 0.18 |
| After-tax WACC | 7.6% | 10.8% |
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 | $157 | $98M | 64.2% |
| 10-Year Growth | $157 | $99M | 42.0% |
| 5-Year EBITDA | $147 | $93M | 61.9% |
| 10-Year EBITDA | $152 | $96M | 40.2% |
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 | $24M |
| Discount Rate (WACC) | 10.8% - 7.6% |
| Enterprise Value | $223M - $315M |
| Net Debt | $1M |
| Equity Value | $222M - $314M |
| Outstanding Shares | 1M |
| Fair Value | $356 - $504 |
| Selected Fair Value | $430.09 |
| Metric | Value |
|---|---|
| Market Capitalization | $72M |
| Enterprise Value | $73M |
| Trailing P/E | 6.46 |
| Forward P/E | 5.60 |
| Trailing EV/EBITDA | 8.85 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.18 |
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% | $47.19 |
| Discounted Cash Flow (5Y) | 25% | $39.14 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.69 |
| Dividend Discount Model (Stable) | 15% | $24.23 |
| Earnings Power Value | 10% | $43.01 |
| Weighted Average | 100% | $171.26 |
Based on our comprehensive valuation analysis, Sourcebio International PLC's weighted average intrinsic value is $171.26, which is approximately 48.9% above the current market price of $115.00.
Key investment considerations:
Given these factors, we believe Sourcebio International PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.