As of June 5, 2025, SVM UK Emerging Fund PLC's estimated intrinsic value ranges from $53.21 to $588.19 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $588.19 | +555.4% |
| Discounted Cash Flow (5Y) | $500.59 | +457.8% |
| Dividend Discount Model (Multi-Stage) | $264.46 | +194.7% |
| Dividend Discount Model (Stable) | $262.63 | +192.6% |
| Earnings Power Value | $53.21 | -40.7% |
Is SVM UK Emerging Fund PLC (SVM.L) undervalued or overvalued?
With the current market price at $89.75, 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 SVM UK Emerging Fund 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.31 | 1.46 |
| Cost of equity | 9.9% | 13.2% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 0.1% | 0.1% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 7.0% | 8.9% |
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 | $500 | $30M | 68.6% |
| 10-Year Growth | $587 | $35M | 51.6% |
| 5-Year EBITDA | $384 | $23M | 59.1% |
| 10-Year EBITDA | $456 | $27M | 37.6% |
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 | $0M |
| Discount Rate (WACC) | 8.9% - 7.0% |
| Enterprise Value | $3M - $4M |
| Net Debt | $0M |
| Equity Value | $3M - $4M |
| Outstanding Shares | 0M |
| Fair Value | $47 - $59 |
| Selected Fair Value | $53.21 |
| Metric | Value |
|---|---|
| Market Capitalization | $5M |
| Enterprise Value | $5M |
| Trailing P/E | 0.00 |
| Forward P/E | 2.30 |
| Trailing EV/EBITDA | 7.55 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.99 |
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% | $176.46 |
| Discounted Cash Flow (5Y) | 25% | $125.15 |
| Dividend Discount Model (Multi-Stage) | 20% | $52.89 |
| Dividend Discount Model (Stable) | 15% | $39.39 |
| Earnings Power Value | 10% | $5.32 |
| Weighted Average | 100% | $399.21 |
Based on our comprehensive valuation analysis, SVM UK Emerging Fund PLC's weighted average intrinsic value is $399.21, which is approximately 344.8% above the current market price of $89.75.
Key investment considerations:
Given these factors, we believe SVM UK Emerging Fund PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.