As of December 15, 2025, Spectris PLC's estimated intrinsic value ranges from $640.18 to $3224.12 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2849.60 | -31.2% |
| Discounted Cash Flow (5Y) | $2714.89 | -34.5% |
| Dividend Discount Model (Multi-Stage) | $3224.12 | -22.2% |
| Dividend Discount Model (Stable) | $640.18 | -84.5% |
| Earnings Power Value | $865.07 | -79.1% |
Is Spectris PLC (SXS.L) undervalued or overvalued?
With the current market price at $4142.00, 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 Spectris 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 | 0.97 | 1.13 |
| Cost of equity | 9.8% | 12.9% |
| Cost of debt | 6.2% | 8.9% |
| Tax rate | 22.4% | 23.5% |
| Debt/Equity ratio | 0.18 | 0.18 |
| After-tax WACC | 9.0% | 12.0% |
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 | $2,715 | $3,313M | 71.4% |
| 10-Year Growth | $2,850 | $3,446M | 49.9% |
| 5-Year EBITDA | $2,170 | $2,773M | 65.8% |
| 10-Year EBITDA | $2,413 | $3,013M | 42.6% |
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 | $152M |
| Discount Rate (WACC) | 12.0% - 9.0% |
| Enterprise Value | $1,273M - $1,686M |
| Net Debt | $622M |
| Equity Value | $651M - $1,064M |
| Outstanding Shares | 1M |
| Fair Value | $657 - $1,073 |
| Selected Fair Value | $865.07 |
| Metric | Value |
|---|---|
| Market Capitalization | $4105M |
| Enterprise Value | $4727M |
| Trailing P/E | 71.02 |
| Forward P/E | 15.76 |
| Trailing EV/EBITDA | 6.60 |
| Current Dividend Yield | 200.97% |
| Dividend Growth Rate (5Y) | 1.55% |
| 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 |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $854.88 |
| Discounted Cash Flow (5Y) | 25% | $678.72 |
| Dividend Discount Model (Multi-Stage) | 20% | $644.82 |
| Dividend Discount Model (Stable) | 15% | $96.03 |
| Earnings Power Value | 10% | $86.51 |
| Weighted Average | 100% | $2360.96 |
Based on our comprehensive valuation analysis, Spectris PLC's intrinsic value is $2360.96, which is approximately 43.0% below the current market price of $4142.00.
Key investment considerations:
Given these factors, we believe Spectris PLC is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.