Empiric Student Property PLC
LSE:ESP

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Empiric Student Property PLC Logo
Empiric Student Property PLC
LSE:ESP
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Price: 75.3 GBX 0.4% Market Closed
Market Cap: 500.1m GBX

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Nov 29, 2025.

Estimated DCF Value of one ESP stock is 67.41 GBX. Compared to the current market price of 75.3 GBX, the stock is Overvalued by 10%.

ESP DCF Value
Base Case
67.41 GBX
Overvaluation 10%
DCF Value
Price
Worst Case
Base Case
Best Case
DCF Value: 67.41 GBX

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 131m GBP. The present value of the terminal value is 316.7m GBP. The total present value equals 447.7m GBP.
Forecast Period
Years
Discount Rate
%
Terminal Growth
%
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DCF Model
Year 1

forecasted

Year 2

forecasted

Year 3

forecasted

Year 4

forecasted

Year 5

forecasted

Terminal

forecasted

Net Income
Revenue98 602102 48094 76096 65597 94198 587
Absolute Value
Growth
Net Margin31.83%32.79%39.29%39.15%39.01%38.87%
Absolute Value
Net Income31 38633 60637 23237 84238 20838 323
Free Cash Flow to Equity
Net CapEx-3 053-2 978-2 574-2 441-2 287-2 115
Absolute Value
As % of Revenue
Debt Ratio0.00%0.00%0.00%0.00%0.00%0.00%
Absolute Value
Net CapEx Financed by Equity-3 053-2 978-2 574-2 441-2 287-2 115
FCFE28 33330 62734 65835 40035 92136 208
Present Value
Discount Rate7.84%7.84%7.84%7.84%7.84%7.84%
Present Value26 27326 33627 63626 17524 629316 656
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 447.7m GBP
Equity Value 447.7m GBP
/ Shares Outstanding 664.2m
Value per Share 0.67 GBP
GBP / GBX Exchange Rate 100
ESP DCF Value 67.41 GBX
Overvalued by 10%

You are using the equity valuation model. In this approach, further calculations for converting firm value to equity value are not required. The present value, obtained in the present value calculation block, already represents the equity value.

The DCF value per share is derived by dividing the present value by the number of shares:

Present Value
447.7m GBX
/
Number of Shares
664.2m
=
DCF Value
67.41 GBX

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
98.6m 98.6m
Net Income
31.4m 38.3m
FCFE
28.3m 36.2m

See Also

Discover More

What is the DCF value of one ESP stock?

Estimated DCF Value of one ESP stock is 67.41 GBX. Compared to the current market price of 75.3 GBX, the stock is Overvalued by 10%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Empiric Student Property PLC's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 447.7m GBP.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 67.41 GBX per share.

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