As of May 22, 2025, Unilever PLC's estimated intrinsic value ranges from $2552.62 to $5843.91 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $5843.91 | +23.4% |
| Discounted Cash Flow (5Y) | $5179.32 | +9.4% |
| Dividend Discount Model (Multi-Stage) | $4171.45 | -11.9% |
| Dividend Discount Model (Stable) | $3067.24 | -35.2% |
| Earnings Power Value | $2552.62 | -46.1% |
Is Unilever PLC (ULVR.L) undervalued or overvalued?
With the current market price at $4736.00, 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 | 0.64 | 0.81 |
| Cost of equity | 7.8% | 10.7% |
| Cost of debt | 4.0% | 4.7% |
| Tax rate | 23.2% | 23.7% |
| Debt/Equity ratio | 0.22 | 0.22 |
| After-tax WACC | 7.0% | 9.4% |
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 | $6,162 | $179,153M | 78.2% |
| 10-Year Growth | $6,953 | $198,815M | 62.0% |
| 5-Year EBITDA | $5,792 | $169,933M | 77.0% |
| 10-Year EBITDA | $6,559 | $189,011M | 60.0% |
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) | 9.4% - 7.0% |
| Enterprise Value | $86,481M - $116,397M |
| Net Debt | $25,917M |
| Equity Value | $60,564M - $90,480M |
| Outstanding Shares | 25M |
| Fair Value | $2,436 - $3,639 |
| Selected Fair Value | $2552.62 |
| Metric | Value |
|---|---|
| Market Capitalization | $117767M |
| Enterprise Value | $139550M |
| Trailing P/E | 24.39 |
| Forward P/E | 18.30 |
| Trailing EV/EBITDA | 12.50 |
| Current Dividend Yield | 315.63% |
| Dividend Growth Rate (5Y) | 0.23% |
| Debt-to-Equity Ratio | 0.22 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $1753.17 |
| Discounted Cash Flow (5Y) | 25% | $1294.83 |
| Dividend Discount Model (Multi-Stage) | 20% | $834.29 |
| Dividend Discount Model (Stable) | 15% | $460.09 |
| Earnings Power Value | 10% | $255.26 |
| Weighted Average | 100% | $4597.64 |
Based on our comprehensive valuation analysis, Unilever PLC's weighted average intrinsic value is $4597.64, which is approximately 2.9% below the current market price of $4736.00.
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.