As of May 31, 2025, Zotefoams PLC's estimated intrinsic value ranges from $249.02 to $342.22 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $342.22 | +15.2% |
| Discounted Cash Flow (5Y) | $315.21 | +6.1% |
| Dividend Discount Model (Multi-Stage) | $249.02 | -16.2% |
| Earnings Power Value | $268.57 | -9.6% |
Is Zotefoams PLC (ZTF.L) undervalued or overvalued?
With the current market price at $297.00, 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 Zotefoams 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 | 0.49 | 0.69 |
| Cost of equity | 6.9% | 9.8% |
| Cost of debt | 4.2% | 5.1% |
| Tax rate | 24.1% | 31.8% |
| Debt/Equity ratio | 0.36 | 0.36 |
| After-tax WACC | 5.9% | 8.1% |
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 | $315 | $157M | 90.9% |
| 10-Year Growth | $342 | $167M | 75.4% |
| 5-Year EBITDA | $343 | $167M | 91.5% |
| 10-Year EBITDA | $396 | $188M | 78.2% |
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 | $9M |
| Discount Rate (WACC) | 8.1% - 5.9% |
| Enterprise Value | $117M - $160M |
| Net Debt | $33M |
| Equity Value | $84M - $127M |
| Outstanding Shares | 0M |
| Fair Value | $213 - $324 |
| Selected Fair Value | $268.57 |
| Metric | Value |
|---|---|
| Market Capitalization | $116M |
| Enterprise Value | $149M |
| Trailing P/E | 0.00 |
| Forward P/E | 71.08 |
| Trailing EV/EBITDA | 7.80 |
| Current Dividend Yield | 291.57% |
| Dividend Growth Rate (5Y) | 37.99% |
| Debt-to-Equity Ratio | 0.36 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $102.67 |
| Discounted Cash Flow (5Y) | 29% | $78.80 |
| Dividend Discount Model (Multi-Stage) | 24% | $49.80 |
| Earnings Power Value | 12% | $26.86 |
| Weighted Average | 100% | $303.68 |
Based on our comprehensive valuation analysis, Zotefoams PLC's weighted average intrinsic value is $303.68, which is approximately 2.3% above the current market price of $297.00.
Key investment considerations:
Given these factors, we believe Zotefoams PLC is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.