As of May 23, 2025, FW Thorpe PLC's estimated intrinsic value ranges from $283.75 to $371.48 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $371.48 | +25.1% |
| Discounted Cash Flow (5Y) | $336.04 | +13.1% |
| Dividend Discount Model (Multi-Stage) | $283.75 | -4.5% |
| Dividend Discount Model (Stable) | $302.12 | +1.7% |
| Earnings Power Value | $290.00 | -2.4% |
Is FW Thorpe PLC (TFW.L) undervalued or overvalued?
With the current market price at $297.00, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate FW Thorpe 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 | 0.57 | 0.68 |
| Cost of equity | 7.4% | 9.7% |
| Cost of debt | 4.6% | 9.7% |
| Tax rate | 17.8% | 18.6% |
| Debt/Equity ratio | 0.02 | 0.02 |
| After-tax WACC | 7.3% | 9.7% |
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 | $336 | $360M | 74.6% |
| 10-Year Growth | $371 | $401M | 56.2% |
| 5-Year EBITDA | $302 | $320M | 71.4% |
| 10-Year EBITDA | $341 | $366M | 52.0% |
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 | $26M |
| Discount Rate (WACC) | 9.7% - 7.3% |
| Enterprise Value | $263M - $348M |
| Net Debt | $(32)M |
| Equity Value | $295M - $381M |
| Outstanding Shares | 1M |
| Fair Value | $253 - $327 |
| Selected Fair Value | $290.00 |
| Metric | Value |
|---|---|
| Market Capitalization | $346M |
| Enterprise Value | $314M |
| Trailing P/E | 14.00 |
| Forward P/E | 14.03 |
| Trailing EV/EBITDA | 7.35 |
| Current Dividend Yield | 322.20% |
| Dividend Growth Rate (5Y) | 4.35% |
| Debt-to-Equity Ratio | 0.02 |
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% | $111.45 |
| Discounted Cash Flow (5Y) | 25% | $84.01 |
| Dividend Discount Model (Multi-Stage) | 20% | $56.75 |
| Dividend Discount Model (Stable) | 15% | $45.32 |
| Earnings Power Value | 10% | $29.00 |
| Weighted Average | 100% | $326.52 |
Based on our comprehensive valuation analysis, FW Thorpe PLC's weighted average intrinsic value is $326.52, which is approximately 9.9% above the current market price of $297.00.
Key investment considerations:
Given these factors, we believe FW Thorpe PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.