As of June 13, 2025, Worsley Investors Ltd's estimated intrinsic value ranges from $4.15 to $100.62 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $15.55 | -38.8% |
| Discounted Cash Flow (5Y) | $12.93 | -49.1% |
| Dividend Discount Model (Multi-Stage) | $4.15 | -83.7% |
| Dividend Discount Model (Stable) | $100.62 | +296.1% |
| Earnings Power Value | $5.27 | -79.3% |
Is Worsley Investors Ltd (WINV.L) undervalued or overvalued?
With the current market price at $25.40, 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 Worsley Investors Ltd'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 | 0.53 | 0.78 |
| Cost of equity | 7.2% | 10.4% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 9.7% | 15.9% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.8% | 7.3% |
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 | $13 | $4M | 85.3% |
| 10-Year Growth | $16 | $5M | 73.9% |
| 5-Year EBITDA | $6 | $1M | 61.7% |
| 10-Year EBITDA | $8 | $2M | 43.5% |
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 | $0M |
| Discount Rate (WACC) | 7.3% - 5.8% |
| Enterprise Value | $1M - $1M |
| Net Debt | $(0)M |
| Equity Value | $2M - $2M |
| Outstanding Shares | 0M |
| Fair Value | $5 - $6 |
| Selected Fair Value | $5.27 |
| Metric | Value |
|---|---|
| Market Capitalization | $8M |
| Enterprise Value | $8M |
| Trailing P/E | 4.65 |
| Forward P/E | 107.84 |
| Trailing EV/EBITDA | 7.30 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| 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% | $4.67 |
| Discounted Cash Flow (5Y) | 25% | $3.23 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.83 |
| Dividend Discount Model (Stable) | 15% | $15.09 |
| Earnings Power Value | 10% | $0.53 |
| Weighted Average | 100% | $24.35 |
Based on our comprehensive valuation analysis, Worsley Investors Ltd's weighted average intrinsic value is $24.35, which is approximately 4.1% below the current market price of $25.40.
Key investment considerations:
Given these factors, we believe Worsley Investors Ltd is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.