As of June 12, 2025, Interra Resources Ltd's estimated intrinsic value ranges from $0.09 to $0.16 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $0.16 | +336.0% |
| Discounted Cash Flow (5Y) | $0.14 | +298.2% |
| Dividend Discount Model (Multi-Stage) | $0.09 | +146.4% |
| Dividend Discount Model (Stable) | $0.10 | +173.0% |
| Earnings Power Value | $0.16 | +344.5% |
Is Interra Resources Ltd (5GI.SI) undervalued or overvalued?
With the current market price at $0.04, 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 Interra Resources Ltd'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 | 2.7% | 3.2% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.72 | 1 |
| Cost of equity | 6.4% | 9.8% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 12.4% | 27.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 6.4% | 9.7% |
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 | $0 | $55M | 68.3% |
| 10-Year Growth | $0 | $62M | 49.6% |
| 5-Year EBITDA | $0 | $52M | 66.7% |
| 10-Year EBITDA | $0 | $59M | 47.0% |
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 | $5M |
| Discount Rate (WACC) | 9.7% - 6.4% |
| Enterprise Value | $50M - $77M |
| Net Debt | $(18)M |
| Equity Value | $68M - $95M |
| Outstanding Shares | 656M |
| Fair Value | $0 - $0 |
| Selected Fair Value | $0.16 |
| Metric | Value |
|---|---|
| Market Capitalization | $24M |
| Enterprise Value | $1M |
| Trailing P/E | 4.36 |
| Forward P/E | 4.24 |
| Trailing EV/EBITDA | 6.10 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.01 |
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% | $0.05 |
| Discounted Cash Flow (5Y) | 25% | $0.04 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.02 |
| Dividend Discount Model (Stable) | 15% | $0.01 |
| Earnings Power Value | 10% | $0.02 |
| Weighted Average | 100% | $0.13 |
Based on our comprehensive valuation analysis, Interra Resources Ltd's weighted average intrinsic value is $0.13, which is approximately 265.0% above the current market price of $0.04.
Key investment considerations:
Given these factors, we believe Interra Resources Ltd is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.