As of May 23, 2025, Solid State PLC's estimated intrinsic value ranges from $163.68 to $292.15 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $292.15 | +62.3% |
| Discounted Cash Flow (5Y) | $266.52 | +48.1% |
| Dividend Discount Model (Multi-Stage) | $211.33 | +17.4% |
| Dividend Discount Model (Stable) | $163.68 | -9.1% |
| Earnings Power Value | $232.45 | +29.1% |
Is Solid State PLC (SOLI.L) undervalued or overvalued?
With the current market price at $180.00, 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 Solid State 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 | 0.45 | 0.52 |
| Cost of equity | 6.7% | 8.6% |
| Cost of debt | 4.9% | 6.9% |
| Tax rate | 18.3% | 23.2% |
| Debt/Equity ratio | 0.16 | 0.16 |
| After-tax WACC | 6.3% | 8.2% |
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 | $267 | $153M | 77.1% |
| 10-Year Growth | $292 | $167M | 61.1% |
| 5-Year EBITDA | $172 | $101M | 65.2% |
| 10-Year EBITDA | $204 | $118M | 45.1% |
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 | $10M |
| Discount Rate (WACC) | 8.2% - 6.3% |
| Enterprise Value | $117M - $151M |
| Net Debt | $6M |
| Equity Value | $111M - $146M |
| Outstanding Shares | 1M |
| Fair Value | $201 - $264 |
| Selected Fair Value | $232.45 |
| Metric | Value |
|---|---|
| Market Capitalization | $99M |
| Enterprise Value | $105M |
| Trailing P/E | 18.58 |
| Forward P/E | 13.51 |
| Trailing EV/EBITDA | 6.35 |
| Current Dividend Yield | 232.96% |
| Dividend Growth Rate (5Y) | 19.13% |
| Debt-to-Equity Ratio | 0.16 |
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% | $87.65 |
| Discounted Cash Flow (5Y) | 25% | $66.63 |
| Dividend Discount Model (Multi-Stage) | 20% | $42.27 |
| Dividend Discount Model (Stable) | 15% | $24.55 |
| Earnings Power Value | 10% | $23.25 |
| Weighted Average | 100% | $244.34 |
Based on our comprehensive valuation analysis, Solid State PLC's weighted average intrinsic value is $244.34, which is approximately 35.7% above the current market price of $180.00.
Key investment considerations:
Given these factors, we believe Solid State PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.