As of June 19, 2025, Warpaint London PLC's estimated intrinsic value ranges from $300.73 to $787.13 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $787.13 | +94.4% |
| Discounted Cash Flow (5Y) | $525.83 | +29.8% |
| Dividend Discount Model (Multi-Stage) | $678.75 | +67.6% |
| Dividend Discount Model (Stable) | $533.05 | +31.6% |
| Earnings Power Value | $300.73 | -25.7% |
Is Warpaint London PLC (W7L.L) undervalued or overvalued?
With the current market price at $405.00, 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 Warpaint London 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 | 0.41 | 0.5 |
| Cost of equity | 6.5% | 8.5% |
| Cost of debt | 4.6% | 5.9% |
| Tax rate | 21.4% | 23.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 6.4% | 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 | $526 | $407M | 82.6% |
| 10-Year Growth | $787 | $618M | 72.0% |
| 5-Year EBITDA | $384 | $293M | 75.7% |
| 10-Year EBITDA | $545 | $422M | 59.0% |
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 | $16M |
| Discount Rate (WACC) | 8.4% - 6.4% |
| Enterprise Value | $195M - $256M |
| Net Debt | $(18)M |
| Equity Value | $213M - $273M |
| Outstanding Shares | 1M |
| Fair Value | $263 - $338 |
| Selected Fair Value | $300.73 |
| Metric | Value |
|---|---|
| Market Capitalization | $327M |
| Enterprise Value | $310M |
| Trailing P/E | 17.94 |
| Forward P/E | 13.99 |
| Trailing EV/EBITDA | 7.45 |
| Current Dividend Yield | 200.74% |
| Dividend Growth Rate (5Y) | 36.13% |
| Debt-to-Equity Ratio | 0.01 |
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% | $236.14 |
| Discounted Cash Flow (5Y) | 25% | $131.46 |
| Dividend Discount Model (Multi-Stage) | 20% | $135.75 |
| Dividend Discount Model (Stable) | 15% | $79.96 |
| Earnings Power Value | 10% | $30.07 |
| Weighted Average | 100% | $613.38 |
Based on our comprehensive valuation analysis, Warpaint London PLC's weighted average intrinsic value is $613.38, which is approximately 51.5% above the current market price of $405.00.
Key investment considerations:
Given these factors, we believe Warpaint London PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.