As of June 8, 2025, ADDvantage Technologies Group Inc's estimated intrinsic value ranges from $8.36 to $27.86 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $12.54 | +3383.6% |
| Discounted Cash Flow (5Y) | $8.36 | +2223.5% |
| Dividend Discount Model (Multi-Stage) | $27.86 | +7639.3% |
| Earnings Power Value | $25.44 | +6966.0% |
Is ADDvantage Technologies Group Inc (AEY) undervalued or overvalued?
With the current market price at $0.36, 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 ADDvantage Technologies Group Inc'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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.91 | 1.55 |
| Cost of equity | 8.1% | 13.6% |
| Cost of debt | 7.0% | 51.5% |
| Tax rate | 1.6% | 3.9% |
| Debt/Equity ratio | 3.52 | 3.52 |
| After-tax WACC | 7.2% | 41.5% |
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 | $8 | $14M | 48.6% |
| 10-Year Growth | $13 | $21M | 24.8% |
| 5-Year EBITDA | $13 | $21M | 65.1% |
| 10-Year EBITDA | $15 | $25M | 36.9% |
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) | 41.5% - 7.2% |
| Enterprise Value | $12M - $68M |
| Net Debt | $2M |
| Equity Value | $10M - $66M |
| Outstanding Shares | 1M |
| Fair Value | $7 - $44 |
| Selected Fair Value | $25.44 |
| Metric | Value |
|---|---|
| Market Capitalization | $1M |
| Enterprise Value | $3M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.56 |
| Trailing EV/EBITDA | 6.55 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 3.52 |
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% | $3.76 |
| Discounted Cash Flow (5Y) | 29% | $2.09 |
| Dividend Discount Model (Multi-Stage) | 24% | $5.57 |
| Earnings Power Value | 12% | $2.54 |
| Weighted Average | 100% | $16.43 |
Based on our comprehensive valuation analysis, ADDvantage Technologies Group Inc's weighted average intrinsic value is $16.43, which is approximately 4465.2% above the current market price of $0.36.
Key investment considerations:
Given these factors, we believe ADDvantage Technologies Group Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.