As of June 6, 2025, Young & Co's Brewery PLC's estimated intrinsic value ranges from $383.51 to $2084.89 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $923.79 | -4.7% |
| Discounted Cash Flow (5Y) | $613.80 | -36.7% |
| Dividend Discount Model (Multi-Stage) | $605.68 | -37.5% |
| Dividend Discount Model (Stable) | $383.51 | -60.4% |
| Earnings Power Value | $2084.89 | +115.2% |
Is Young & Co's Brewery PLC (YNGA.L) undervalued or overvalued?
With the current market price at $969.00, the stock appears to be moderately overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Young & Co's Brewery 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 | 0.72 | 0.82 |
| Cost of equity | 8.3% | 10.7% |
| Cost of debt | 4.0% | 5.1% |
| Tax rate | 27.4% | 36.5% |
| Debt/Equity ratio | 0.73 | 0.73 |
| After-tax WACC | 6.0% | 7.6% |
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 | $614 | $672M | 87.0% |
| 10-Year Growth | $924 | $837M | 74.5% |
| 5-Year EBITDA | $631 | $681M | 87.1% |
| 10-Year EBITDA | $911 | $830M | 74.3% |
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 | $97M |
| Discount Rate (WACC) | 7.6% - 6.0% |
| Enterprise Value | $1,287M - $1,619M |
| Net Debt | $346M |
| Equity Value | $940M - $1,272M |
| Outstanding Shares | 1M |
| Fair Value | $1,772 - $2,398 |
| Selected Fair Value | $2084.89 |
| Metric | Value |
|---|---|
| Market Capitalization | $514M |
| Enterprise Value | $861M |
| Trailing P/E | 36.73 |
| Forward P/E | 27.17 |
| Trailing EV/EBITDA | 6.65 |
| Current Dividend Yield | 255.92% |
| Dividend Growth Rate (5Y) | 4.25% |
| Debt-to-Equity Ratio | 0.73 |
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% | $277.14 |
| Discounted Cash Flow (5Y) | 25% | $153.45 |
| Dividend Discount Model (Multi-Stage) | 20% | $121.14 |
| Dividend Discount Model (Stable) | 15% | $57.53 |
| Earnings Power Value | 10% | $208.49 |
| Weighted Average | 100% | $817.74 |
Based on our comprehensive valuation analysis, Young & Co's Brewery PLC's weighted average intrinsic value is $817.74, which is approximately 15.6% below the current market price of $969.00.
Key investment considerations:
Given these factors, we believe Young & Co's Brewery PLC is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.