As of May 31, 2025, Science in Sport PLC's estimated intrinsic value ranges from $55.99 to $55.99 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Earnings Power Value | $55.99 | +68.1% |
Is Science in Sport PLC (SIS.L) undervalued or overvalued?
With the current market price at $33.30, 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 Science in Sport 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 | 0.39 | 0.41 |
| Cost of equity | 6.3% | 7.8% |
| Cost of debt | 7.0% | 7.0% |
| Tax rate | 3.7% | 6.8% |
| Debt/Equity ratio | 0.18 | 0.18 |
| After-tax WACC | 6.4% | 7.6% |
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $10M |
| Discount Rate (WACC) | 7.6% - 6.4% |
| Enterprise Value | $128M - $153M |
| Net Debt | $12M |
| Equity Value | $116M - $142M |
| Outstanding Shares | 2M |
| Fair Value | $50 - $61 |
| Selected Fair Value | $55.99 |
| Metric | Value |
|---|---|
| Market Capitalization | $77M |
| Enterprise Value | $88M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 7.30 |
| 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 |
|---|---|---|
| Earnings Power Value | 100% | $5.60 |
| Weighted Average | 100% | $55.99 |
Based on our comprehensive valuation analysis, Science in Sport PLC's weighted average intrinsic value is $55.99, which is approximately 68.1% above the current market price of $33.30.
Key investment considerations:
Given these factors, we believe Science in Sport PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.