As of June 12, 2025, Van Elle Holdings PLC's estimated intrinsic value ranges from $34.57 to $64.58 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $64.58 | +61.5% |
| Discounted Cash Flow (5Y) | $58.49 | +46.2% |
| Dividend Discount Model (Multi-Stage) | $49.15 | +22.9% |
| Dividend Discount Model (Stable) | $34.57 | -13.6% |
| Earnings Power Value | $48.57 | +21.4% |
Is Van Elle Holdings PLC (VANL.L) undervalued or overvalued?
With the current market price at $40.00, 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 Van Elle Holdings 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 | 0.61 | 0.79 |
| Cost of equity | 7.7% | 10.5% |
| Cost of debt | 4.6% | 5.9% |
| Tax rate | 11.6% | 17.8% |
| Debt/Equity ratio | 0.18 | 0.18 |
| After-tax WACC | 7.1% | 9.6% |
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 | $58 | $71M | 70.9% |
| 10-Year Growth | $65 | $78M | 49.9% |
| 5-Year EBITDA | $50 | $61M | 66.4% |
| 10-Year EBITDA | $58 | $70M | 44.6% |
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 | $5M |
| Discount Rate (WACC) | 9.6% - 7.1% |
| Enterprise Value | $51M - $69M |
| Net Debt | $4M |
| Equity Value | $46M - $64M |
| Outstanding Shares | 1M |
| Fair Value | $41 - $56 |
| Selected Fair Value | $48.57 |
| Metric | Value |
|---|---|
| Market Capitalization | $46M |
| Enterprise Value | $50M |
| Trailing P/E | 11.68 |
| Forward P/E | 8.54 |
| Trailing EV/EBITDA | 4.40 |
| Current Dividend Yield | 295.75% |
| Dividend Growth Rate (5Y) | 12.47% |
| Debt-to-Equity Ratio | 0.18 |
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% | $19.37 |
| Discounted Cash Flow (5Y) | 25% | $14.62 |
| Dividend Discount Model (Multi-Stage) | 20% | $9.83 |
| Dividend Discount Model (Stable) | 15% | $5.19 |
| Earnings Power Value | 10% | $4.86 |
| Weighted Average | 100% | $53.87 |
Based on our comprehensive valuation analysis, Van Elle Holdings PLC's weighted average intrinsic value is $53.87, which is approximately 34.7% above the current market price of $40.00.
Key investment considerations:
Given these factors, we believe Van Elle Holdings PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.