As of June 9, 2025, Utilico Emerging Markets Trust PLC's estimated intrinsic value ranges from $68.30 to $424.13 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $424.13 | +79.7% |
| Discounted Cash Flow (5Y) | $395.40 | +67.5% |
| Dividend Discount Model (Multi-Stage) | $217.37 | -7.9% |
| Dividend Discount Model (Stable) | $68.30 | -71.1% |
| Earnings Power Value | $240.19 | +1.8% |
Is Utilico Emerging Markets Trust PLC (UEM.L) undervalued or overvalued?
With the current market price at $236.00, 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 Utilico Emerging Markets Trust 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 | 1.42 | 1.82 |
| Cost of equity | 12.5% | 17.7% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 3.5% | 4.3% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 8.2% | 11.0% |
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 | $395 | $721M | 67.0% |
| 10-Year Growth | $424 | $773M | 44.3% |
| 5-Year EBITDA | $256 | $467M | 49.1% |
| 10-Year EBITDA | $325 | $593M | 27.5% |
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 | $41M |
| Discount Rate (WACC) | 11.0% - 8.2% |
| Enterprise Value | $373M - $504M |
| Net Debt | $2M |
| Equity Value | $371M - $502M |
| Outstanding Shares | 2M |
| Fair Value | $204 - $276 |
| Selected Fair Value | $240.19 |
| Metric | Value |
|---|---|
| Market Capitalization | $429M |
| Enterprise Value | $431M |
| Trailing P/E | 20.38 |
| Forward P/E | 6.97 |
| Trailing EV/EBITDA | 5.05 |
| Current Dividend Yield | 383.17% |
| Dividend Growth Rate (5Y) | -0.12% |
| 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% | $127.24 |
| Discounted Cash Flow (5Y) | 25% | $98.85 |
| Dividend Discount Model (Multi-Stage) | 20% | $43.47 |
| Dividend Discount Model (Stable) | 15% | $10.25 |
| Earnings Power Value | 10% | $24.02 |
| Weighted Average | 100% | $303.83 |
Based on our comprehensive valuation analysis, Utilico Emerging Markets Trust PLC's weighted average intrinsic value is $303.83, which is approximately 28.7% above the current market price of $236.00.
Key investment considerations:
Given these factors, we believe Utilico Emerging Markets Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.