As of July 4, 2025, Virtus Investment Partners Inc's estimated intrinsic value ranges from $154.97 to $624.98 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $173.37 | -12.9% |
| Discounted Cash Flow (5Y) | $154.97 | -22.2% |
| Dividend Discount Model (Multi-Stage) | $222.57 | +11.8% |
| Dividend Discount Model (Stable) | $238.56 | +19.8% |
| Earnings Power Value | $624.98 | +213.9% |
Is Virtus Investment Partners Inc (VRTS) undervalued or overvalued?
With the current market price at $199.10, the stock appears to be moderately 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 Virtus Investment Partners Inc'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.81 | 0.91 |
| Cost of equity | 7.6% | 10.0% |
| Cost of debt | 4.0% | 4.8% |
| Tax rate | 26.3% | 26.7% |
| Debt/Equity ratio | 1.9 | 1.9 |
| After-tax WACC | 4.6% | 5.7% |
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 | $155 | $3,205M | 85.5% |
| 10-Year Growth | $173 | $3,332M | 73.6% |
| 5-Year EBITDA | $(1,234) | $1,706M | 72.7% |
| 10-Year EBITDA | $(1,234) | $1,999M | 56.0% |
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 | $328M |
| Discount Rate (WACC) | 5.7% - 4.6% |
| Enterprise Value | $5,715M - $7,190M |
| Net Debt | $2,134M |
| Equity Value | $3,581M - $5,056M |
| Outstanding Shares | 7M |
| Fair Value | $518 - $732 |
| Selected Fair Value | $624.98 |
| Metric | Value |
|---|---|
| Market Capitalization | $1376M |
| Enterprise Value | $3510M |
| Trailing P/E | 11.41 |
| Forward P/E | 10.56 |
| Trailing EV/EBITDA | 9.65 |
| Current Dividend Yield | 476.68% |
| Dividend Growth Rate (5Y) | 23.63% |
| Debt-to-Equity Ratio | 1.90 |
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% | $52.01 |
| Discounted Cash Flow (5Y) | 25% | $38.74 |
| Dividend Discount Model (Multi-Stage) | 20% | $44.51 |
| Dividend Discount Model (Stable) | 15% | $35.78 |
| Earnings Power Value | 10% | $62.50 |
| Weighted Average | 100% | $233.55 |
Based on our comprehensive valuation analysis, Virtus Investment Partners Inc's intrinsic value is $233.55, which is approximately 17.3% above the current market price of $199.10.
Key investment considerations:
Given these factors, we believe Virtus Investment Partners Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.