As of June 18, 2025, STV Group PLC's estimated intrinsic value ranges from $242.12 to $3406.95 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $575.86 | +224.9% |
| Discounted Cash Flow (5Y) | $340.38 | +92.0% |
| Dividend Discount Model (Multi-Stage) | $254.14 | +43.4% |
| Dividend Discount Model (Stable) | $242.12 | +36.6% |
| Earnings Power Value | $3406.95 | +1822.1% |
Is STV Group PLC (STVG.L) undervalued or overvalued?
With the current market price at $177.25, 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 STV 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 | 0.48 | 0.96 |
| Cost of equity | 6.9% | 11.7% |
| Cost of debt | 4.2% | 5.7% |
| Tax rate | 16.4% | 20.6% |
| Debt/Equity ratio | 0.81 | 0.81 |
| After-tax WACC | 5.3% | 8.5% |
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 | $340 | $218M | 69.3% |
| 10-Year Growth | $576 | $331M | 59.5% |
| 5-Year EBITDA | $213 | $158M | 57.4% |
| 10-Year EBITDA | $364 | $230M | 41.6% |
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 | $110M |
| Discount Rate (WACC) | 8.5% - 5.3% |
| Enterprise Value | $1,299M - $2,061M |
| Net Debt | $56M |
| Equity Value | $1,242M - $2,005M |
| Outstanding Shares | 0M |
| Fair Value | $2,607 - $4,207 |
| Selected Fair Value | $3406.95 |
| Metric | Value |
|---|---|
| Market Capitalization | $84M |
| Enterprise Value | $141M |
| Trailing P/E | 7.82 |
| Forward P/E | 8.75 |
| Trailing EV/EBITDA | 4.75 |
| Current Dividend Yield | 614.96% |
| Dividend Growth Rate (5Y) | -10.66% |
| Debt-to-Equity Ratio | 0.81 |
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% | $172.76 |
| Discounted Cash Flow (5Y) | 25% | $85.10 |
| Dividend Discount Model (Multi-Stage) | 20% | $50.83 |
| Dividend Discount Model (Stable) | 15% | $36.32 |
| Earnings Power Value | 10% | $340.69 |
| Weighted Average | 100% | $685.69 |
Based on our comprehensive valuation analysis, STV Group PLC's weighted average intrinsic value is $685.69, which is approximately 286.9% above the current market price of $177.25.
Key investment considerations:
Given these factors, we believe STV Group PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.