As of May 22, 2025, Sanne Group PLC's estimated intrinsic value ranges from $65.45 to $675.32 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $284.24 | -69.1% |
| Discounted Cash Flow (5Y) | $65.45 | -92.9% |
| Dividend Discount Model (Multi-Stage) | $158.12 | -82.8% |
| Earnings Power Value | $675.32 | -26.7% |
Is Sanne Group PLC (SNN.L) undervalued or overvalued?
With the current market price at $921.00, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Sanne Group 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 | 0.55 | 0.59 |
| Cost of equity | 7.3% | 9.1% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 24.1% | 32.4% |
| Debt/Equity ratio | 0.1 | 0.1 |
| After-tax WACC | 6.9% | 8.6% |
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 | $65 | $199M | 87.9% |
| 10-Year Growth | $284 | $555M | 80.3% |
| 5-Year EBITDA | $41 | $159M | 84.8% |
| 10-Year EBITDA | $113 | $276M | 60.6% |
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 | $91M |
| Discount Rate (WACC) | 8.6% - 6.9% |
| Enterprise Value | $1,062M - $1,320M |
| Net Debt | $92M |
| Equity Value | $970M - $1,228M |
| Outstanding Shares | 2M |
| Fair Value | $596 - $755 |
| Selected Fair Value | $675.32 |
| Metric | Value |
|---|---|
| Market Capitalization | $1498M |
| Enterprise Value | $1590M |
| Trailing P/E | 0.00 |
| Forward P/E | 922.82 |
| Trailing EV/EBITDA | 5.55 |
| Current Dividend Yield | 106.76% |
| Dividend Growth Rate (5Y) | 2.19% |
| Debt-to-Equity Ratio | 0.10 |
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% | $85.27 |
| Discounted Cash Flow (5Y) | 29% | $16.36 |
| Dividend Discount Model (Multi-Stage) | 24% | $31.62 |
| Earnings Power Value | 12% | $67.53 |
| Weighted Average | 100% | $236.22 |
Based on our comprehensive valuation analysis, Sanne Group PLC's weighted average intrinsic value is $236.22, which is approximately 74.4% below the current market price of $921.00.
Key investment considerations:
Given these factors, we believe Sanne Group PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.