As of June 8, 2025, Ventus VCT PLC's estimated intrinsic value ranges from $121.40 to $337.48 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $337.48 | +319.2% |
| Discounted Cash Flow (5Y) | $282.82 | +251.3% |
| Dividend Discount Model (Multi-Stage) | $164.06 | +103.8% |
| Dividend Discount Model (Stable) | $174.72 | +117.0% |
| Earnings Power Value | $121.40 | +50.8% |
Is Ventus VCT PLC (VEN.L) undervalued or overvalued?
With the current market price at $80.50, 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 Ventus VCT 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 | 2.9% | 3.4% |
| Equity market risk premium | 5.3% | 6.3% |
| Adjusted beta | 1.18 | 1.38 |
| Cost of equity | 9.2% | 12.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 19.0% | 19.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.6% | 8.4% |
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 | $283 | $92M | 74.8% |
| 10-Year Growth | $337 | $109M | 56.4% |
| 5-Year EBITDA | $193 | $62M | 62.8% |
| 10-Year EBITDA | $258 | $83M | 42.8% |
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 | $3M |
| Discount Rate (WACC) | 8.4% - 6.6% |
| Enterprise Value | $34M - $43M |
| Net Debt | $(1)M |
| Equity Value | $35M - $44M |
| Outstanding Shares | 0M |
| Fair Value | $108 - $135 |
| Selected Fair Value | $121.40 |
| Metric | Value |
|---|---|
| Market Capitalization | $26M |
| Enterprise Value | $26M |
| Trailing P/E | 3.78 |
| Forward P/E | 4.69 |
| Trailing EV/EBITDA | 6.60 |
| Current Dividend Yield | 1896.60% |
| Dividend Growth Rate (5Y) | -10.41% |
| Debt-to-Equity Ratio | 0.97 |
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% | $101.24 |
| Discounted Cash Flow (5Y) | 25% | $70.70 |
| Dividend Discount Model (Multi-Stage) | 20% | $32.81 |
| Dividend Discount Model (Stable) | 15% | $26.21 |
| Earnings Power Value | 10% | $12.14 |
| Weighted Average | 100% | $243.11 |
Based on our comprehensive valuation analysis, Ventus VCT PLC's weighted average intrinsic value is $243.11, which is approximately 202.0% above the current market price of $80.50.
Key investment considerations:
Given these factors, we believe Ventus VCT PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.