As of June 12, 2025, Unbound Group PLC's estimated intrinsic value ranges from $213.56 to $779.24 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $779.24 | +103798.5% |
| Discounted Cash Flow (5Y) | $725.88 | +96683.8% |
| Dividend Discount Model (Multi-Stage) | $368.91 | +49088.6% |
| Earnings Power Value | $213.56 | +28374.6% |
Is Unbound Group PLC (UBG.L) undervalued or overvalued?
With the current market price at $0.75, 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 Unbound 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 | 0.95 | 1.13 |
| Cost of equity | 9.7% | 12.9% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.9% | 8.5% |
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 | $726 | $560M | 75.7% |
| 10-Year Growth | $779 | $601M | 54.4% |
| 5-Year EBITDA | $444 | $349M | 60.9% |
| 10-Year EBITDA | $562 | $437M | 37.4% |
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 | $13M |
| Discount Rate (WACC) | 8.5% - 6.9% |
| Enterprise Value | $157M - $194M |
| Net Debt | $15M |
| Equity Value | $142M - $179M |
| Outstanding Shares | 1M |
| Fair Value | $189 - $238 |
| Selected Fair Value | $213.56 |
| Metric | Value |
|---|---|
| Market Capitalization | $1M |
| Enterprise Value | $16M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.02 |
| Trailing EV/EBITDA | 5.70 |
| Current Dividend Yield | 4121.19% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 32.22 |
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% | $233.77 |
| Discounted Cash Flow (5Y) | 29% | $181.47 |
| Dividend Discount Model (Multi-Stage) | 24% | $73.78 |
| Earnings Power Value | 12% | $21.36 |
| Weighted Average | 100% | $600.45 |
Based on our comprehensive valuation analysis, Unbound Group PLC's weighted average intrinsic value is $600.45, which is approximately 79959.6% above the current market price of $0.75.
Key investment considerations:
Given these factors, we believe Unbound Group PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.