As of May 22, 2025, Spectris PLC's estimated intrinsic value ranges from $875.15 to $2837.52 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2837.52 | +38.8% |
| Discounted Cash Flow (5Y) | $2785.47 | +36.3% |
| Dividend Discount Model (Multi-Stage) | $2263.68 | +10.7% |
| Dividend Discount Model (Stable) | $2276.79 | +11.4% |
| Earnings Power Value | $875.15 | -57.2% |
Is Spectris PLC (SXS.L) undervalued or overvalued?
With the current market price at $2044.00, the stock appears to be moderately 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 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 | 1.13 | 1.23 |
| Cost of equity | 10.7% | 13.6% |
| Cost of debt | 5.1% | 8.9% |
| Tax rate | 22.4% | 23.5% |
| Debt/Equity ratio | 0.35 | 0.35 |
| After-tax WACC | 8.9% | 11.8% |
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 | $2,785 | $3,398M | 69.6% |
| 10-Year Growth | $2,838 | $3,450M | 48.3% |
| 5-Year EBITDA | $3,069 | $3,681M | 71.9% |
| 10-Year EBITDA | $3,067 | $3,678M | 51.5% |
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) | 11.8% - 8.9% |
| Enterprise Value | $1,290M - $1,703M |
| Net Debt | $626M |
| Equity Value | $665M - $1,078M |
| Outstanding Shares | 1M |
| Fair Value | $668 - $1,083 |
| Selected Fair Value | $875.15 |
| Metric | Value |
|---|---|
| Market Capitalization | $2035M |
| Enterprise Value | $2660M |
| Trailing P/E | 8.71 |
| Forward P/E | 7.59 |
| Trailing EV/EBITDA | 9.90 |
| Current Dividend Yield | 390.67% |
| Dividend Growth Rate (5Y) | 1.55% |
| Debt-to-Equity Ratio | 0.35 |
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% | $851.26 |
| Discounted Cash Flow (5Y) | 25% | $696.37 |
| Dividend Discount Model (Multi-Stage) | 20% | $452.74 |
| Dividend Discount Model (Stable) | 15% | $341.52 |
| Earnings Power Value | 10% | $87.52 |
| Weighted Average | 100% | $2429.39 |
Based on our comprehensive valuation analysis, Spectris PLC's weighted average intrinsic value is $2429.39, which is approximately 18.9% above the current market price of $2044.00.
Key investment considerations:
Given these factors, we believe Spectris PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.