As of May 23, 2025, Safestyle UK PLC's estimated intrinsic value ranges from $1.80 to $540.72 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $131.38 | +40957.0% |
| Discounted Cash Flow (5Y) | $49.69 | +15427.6% |
| Dividend Discount Model (Multi-Stage) | $1.80 | +461.0% |
| Earnings Power Value | $540.72 | +168875.5% |
Is Safestyle UK PLC (SFE.L) undervalued or overvalued?
With the current market price at $0.32, 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 Safestyle UK 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 | 0.84 | 2.28 |
| Cost of equity | 9.0% | 20.9% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 18.1% | 19.0% |
| Debt/Equity ratio | 31.77 | 31.77 |
| After-tax WACC | 4.2% | 4.6% |
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 | $50 | $79M | 98.6% |
| 10-Year Growth | $131 | $193M | 88.6% |
| 5-Year EBITDA | $6 | $19M | 94.3% |
| 10-Year EBITDA | $32 | $55M | 60.2% |
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 | $33M |
| Discount Rate (WACC) | 4.6% - 4.2% |
| Enterprise Value | $733M - $789M |
| Net Debt | $10M |
| Equity Value | $723M - $778M |
| Outstanding Shares | 1M |
| Fair Value | $521 - $561 |
| Selected Fair Value | $540.72 |
| Metric | Value |
|---|---|
| Market Capitalization | $0M |
| Enterprise Value | $11M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 5.55 |
| Current Dividend Yield | 15639.96% |
| Dividend Growth Rate (5Y) | -45.86% |
| Debt-to-Equity Ratio | 31.77 |
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% | $39.41 |
| Discounted Cash Flow (5Y) | 29% | $12.42 |
| Dividend Discount Model (Multi-Stage) | 24% | $0.36 |
| Earnings Power Value | 12% | $54.07 |
| Weighted Average | 100% | $125.02 |
Based on our comprehensive valuation analysis, Safestyle UK PLC's weighted average intrinsic value is $125.02, which is approximately 38969.1% above the current market price of $0.32.
Key investment considerations:
Given these factors, we believe Safestyle UK PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.