As of October 11, 2025, Unilever PLC's estimated intrinsic value ranges from $2796.89 to $6235.85 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $6235.85 | +39.0% |
| Discounted Cash Flow (5Y) | $5483.10 | +22.3% |
| Dividend Discount Model (Multi-Stage) | $4408.86 | -1.7% |
| Dividend Discount Model (Stable) | $3357.13 | -25.1% |
| Earnings Power Value | $2796.89 | -37.6% |
Is Unilever PLC (ULVR.L) undervalued or overvalued?
With the current market price at $4485.00, 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 Unilever 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 | 0.59 | 0.75 |
| Cost of equity | 7.5% | 10.3% |
| Cost of debt | 4.0% | 4.7% |
| Tax rate | 23.2% | 23.7% |
| Debt/Equity ratio | 0.25 | 0.25 |
| After-tax WACC | 6.6% | 8.9% |
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 | $6,293 | $181,807M | 81.2% |
| 10-Year Growth | $7,157 | $202,966M | 65.4% |
| 5-Year EBITDA | $4,565 | $139,479M | 75.5% |
| 10-Year EBITDA | $5,551 | $163,625M | 57.1% |
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 | $8,098M |
| Discount Rate (WACC) | 8.9% - 6.6% |
| Enterprise Value | $90,699M - $121,900M |
| Net Debt | $27,681M |
| Equity Value | $63,018M - $94,219M |
| Outstanding Shares | 24M |
| Fair Value | $2,573 - $3,847 |
| Selected Fair Value | $2796.89 |
| Metric | Value |
|---|---|
| Market Capitalization | $109845M |
| Enterprise Value | $133963M |
| Trailing P/E | 22.69 |
| Forward P/E | 17.86 |
| Trailing EV/EBITDA | 10.30 |
| Current Dividend Yield | 357.78% |
| Dividend Growth Rate (5Y) | 0.23% |
| Debt-to-Equity Ratio | 0.25 |
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% | $1870.76 |
| Discounted Cash Flow (5Y) | 25% | $1370.78 |
| Dividend Discount Model (Multi-Stage) | 20% | $881.77 |
| Dividend Discount Model (Stable) | 15% | $503.57 |
| Earnings Power Value | 10% | $279.69 |
| Weighted Average | 100% | $4906.56 |
Based on our comprehensive valuation analysis, Unilever PLC's intrinsic value is $4906.56, which is approximately 9.4% above the current market price of $4485.00.
Key investment considerations:
Given these factors, we believe Unilever PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.