As of June 6, 2025, Tre Kronor Property Investment AB's estimated intrinsic value ranges from $28.39 to $708.37 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $237.75 | +49.7% |
| Discounted Cash Flow (5Y) | $210.81 | +32.7% |
| Dividend Discount Model (Multi-Stage) | $295.86 | +86.3% |
| Dividend Discount Model (Stable) | $708.37 | +346.1% |
| Earnings Power Value | $28.39 | -82.1% |
Is Tre Kronor Property Investment AB (3KR.ST) undervalued or overvalued?
With the current market price at $158.80, 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 Tre Kronor Property Investment AB'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 | 2.3% | 2.8% |
| Equity market risk premium | 4.7% | 5.7% |
| Adjusted beta | 0.5 | 0.66 |
| Cost of equity | 4.7% | 7.1% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 22.2% | 22.7% |
| Debt/Equity ratio | 0.92 | 0.92 |
| After-tax WACC | 3.9% | 5.4% |
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 | $211 | $3,617M | 88.1% |
| 10-Year Growth | $238 | $3,894M | 78.0% |
| 5-Year EBITDA | $59 | $2,056M | 79.1% |
| 10-Year EBITDA | $93 | $2,407M | 64.4% |
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 | $79M |
| Discount Rate (WACC) | 5.4% - 3.9% |
| Enterprise Value | $1,476M - $2,008M |
| Net Debt | $1,450M |
| Equity Value | $26M - $558M |
| Outstanding Shares | 10M |
| Fair Value | $3 - $54 |
| Selected Fair Value | $28.39 |
| Metric | Value |
|---|---|
| Market Capitalization | $1632M |
| Enterprise Value | $3082M |
| Trailing P/E | 7.22 |
| Forward P/E | 11.76 |
| Trailing EV/EBITDA | 13.90 |
| Current Dividend Yield | 805.88% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.92 |
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% | $71.33 |
| Discounted Cash Flow (5Y) | 25% | $52.70 |
| Dividend Discount Model (Multi-Stage) | 20% | $59.17 |
| Dividend Discount Model (Stable) | 15% | $106.26 |
| Earnings Power Value | 10% | $2.84 |
| Weighted Average | 100% | $292.30 |
Based on our comprehensive valuation analysis, Tre Kronor Property Investment AB's weighted average intrinsic value is $292.30, which is approximately 84.1% above the current market price of $158.80.
Key investment considerations:
Given these factors, we believe Tre Kronor Property Investment AB is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.