As of June 18, 2025, Property Franchise Group PLC's estimated intrinsic value ranges from $294.09 to $642.08 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $642.08 | +16.7% |
| Discounted Cash Flow (5Y) | $522.93 | -4.9% |
| Dividend Discount Model (Multi-Stage) | $623.52 | +13.4% |
| Dividend Discount Model (Stable) | $440.37 | -19.9% |
| Earnings Power Value | $294.09 | -46.5% |
Is Property Franchise Group PLC (TPFG.L) undervalued or overvalued?
With the current market price at $550.00, 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 Property Franchise 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 | 0.38 | 0.4 |
| Cost of equity | 6.3% | 7.8% |
| Cost of debt | 4.6% | 98.8% |
| Tax rate | 20.0% | 24.4% |
| Debt/Equity ratio | 0.05 | 0.05 |
| After-tax WACC | 6.2% | 11.1% |
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 | $523 | $324M | 76.5% |
| 10-Year Growth | $642 | $395M | 61.4% |
| 5-Year EBITDA | $533 | $330M | 76.9% |
| 10-Year EBITDA | $650 | $399M | 61.9% |
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 | $15M |
| Discount Rate (WACC) | 11.1% - 6.2% |
| Enterprise Value | $134M - $242M |
| Net Debt | $13M |
| Equity Value | $121M - $229M |
| Outstanding Shares | 1M |
| Fair Value | $203 - $385 |
| Selected Fair Value | $294.09 |
| Metric | Value |
|---|---|
| Market Capitalization | $327M |
| Enterprise Value | $340M |
| Trailing P/E | 32.08 |
| Forward P/E | 23.10 |
| Trailing EV/EBITDA | 14.05 |
| Current Dividend Yield | 277.18% |
| Dividend Growth Rate (5Y) | 101.91% |
| Debt-to-Equity Ratio | 0.05 |
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% | $192.63 |
| Discounted Cash Flow (5Y) | 25% | $130.73 |
| Dividend Discount Model (Multi-Stage) | 20% | $124.70 |
| Dividend Discount Model (Stable) | 15% | $66.06 |
| Earnings Power Value | 10% | $29.41 |
| Weighted Average | 100% | $543.53 |
Based on our comprehensive valuation analysis, Property Franchise Group PLC's weighted average intrinsic value is $543.53, which is approximately 1.2% below the current market price of $550.00.
Key investment considerations:
Given these factors, we believe Property Franchise Group PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.