As of June 12, 2025, Renewables Infrastructure Group Ltd's estimated intrinsic value ranges from $44.30 to $145.22 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $145.22 | +73.5% |
| Discounted Cash Flow (5Y) | $135.48 | +61.9% |
| Dividend Discount Model (Multi-Stage) | $44.30 | -47.1% |
| Earnings Power Value | $65.65 | -21.6% |
Is Renewables Infrastructure Group Ltd (TRIG.L) undervalued or overvalued?
With the current market price at $83.70, 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 Renewables Infrastructure Group Ltd'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 | 0.73 | 0.81 |
| Cost of equity | 8.3% | 10.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.2% | 7.3% |
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 | $135 | $3,094M | 73.7% |
| 10-Year Growth | $145 | $3,318M | 55.5% |
| 5-Year EBITDA | $113 | $2,582M | 68.4% |
| 10-Year EBITDA | $127 | $2,904M | 49.2% |
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 | $100M |
| Discount Rate (WACC) | 7.3% - 6.2% |
| Enterprise Value | $1,367M - $1,620M |
| Net Debt | $(12)M |
| Equity Value | $1,379M - $1,632M |
| Outstanding Shares | 23M |
| Fair Value | $60 - $71 |
| Selected Fair Value | $65.65 |
| Metric | Value |
|---|---|
| Market Capitalization | $1919M |
| Enterprise Value | $1907M |
| Trailing P/E | 0.00 |
| Forward P/E | 15.66 |
| Trailing EV/EBITDA | 10.75 |
| Current Dividend Yield | 966.66% |
| Dividend Growth Rate (5Y) | 14.43% |
| Debt-to-Equity Ratio | 0.93 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $43.57 |
| Discounted Cash Flow (5Y) | 29% | $33.87 |
| Dividend Discount Model (Multi-Stage) | 24% | $8.86 |
| Earnings Power Value | 12% | $6.57 |
| Weighted Average | 100% | $109.25 |
Based on our comprehensive valuation analysis, Renewables Infrastructure Group Ltd's weighted average intrinsic value is $109.25, which is approximately 30.5% above the current market price of $83.70.
Key investment considerations:
Given these factors, we believe Renewables Infrastructure Group Ltd is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.