As of May 29, 2025, Witan Investment Trust PLC's estimated intrinsic value ranges from $102.28 to $402.77 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $402.77 | +51.4% |
| Discounted Cash Flow (5Y) | $372.04 | +39.9% |
| Dividend Discount Model (Multi-Stage) | $267.19 | +0.4% |
| Dividend Discount Model (Stable) | $319.36 | +20.1% |
| Earnings Power Value | $102.28 | -61.5% |
Is Witan Investment Trust PLC (WTAN.L) undervalued or overvalued?
With the current market price at $266.00, 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 Witan Investment Trust 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 | 0.9 | 0.98 |
| Cost of equity | 9.4% | 11.8% |
| Cost of debt | 4.0% | 4.6% |
| Tax rate | 0.8% | 1.1% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 8.7% | 10.9% |
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 | $372 | $2,364M | 67.8% |
| 10-Year Growth | $403 | $2,550M | 45.6% |
| 5-Year EBITDA | $352 | $2,245M | 66.1% |
| 10-Year EBITDA | $389 | $2,464M | 43.7% |
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 | $70M |
| Discount Rate (WACC) | 10.9% - 8.7% |
| Enterprise Value | $644M - $808M |
| Net Debt | $105M |
| Equity Value | $539M - $703M |
| Outstanding Shares | 6M |
| Fair Value | $89 - $116 |
| Selected Fair Value | $102.28 |
| Metric | Value |
|---|---|
| Market Capitalization | $1615M |
| Enterprise Value | $1720M |
| Trailing P/E | 7.33 |
| Forward P/E | 8.27 |
| Trailing EV/EBITDA | 10.55 |
| Current Dividend Yield | 235.80% |
| Dividend Growth Rate (5Y) | -3.44% |
| Debt-to-Equity Ratio | 0.15 |
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% | $120.83 |
| Discounted Cash Flow (5Y) | 25% | $93.01 |
| Dividend Discount Model (Multi-Stage) | 20% | $53.44 |
| Dividend Discount Model (Stable) | 15% | $47.90 |
| Earnings Power Value | 10% | $10.23 |
| Weighted Average | 100% | $325.41 |
Based on our comprehensive valuation analysis, Witan Investment Trust PLC's weighted average intrinsic value is $325.41, which is approximately 22.3% above the current market price of $266.00.
Key investment considerations:
Given these factors, we believe Witan Investment Trust PLC is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.