As of July 17, 2025, Ekarat Engineering PCL's estimated intrinsic value ranges from $1.69 to $2.67 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2.67 | +190.0% |
| Discounted Cash Flow (5Y) | $2.46 | +167.1% |
| Dividend Discount Model (Multi-Stage) | $1.69 | +83.7% |
| Dividend Discount Model (Stable) | $2.20 | +139.7% |
| Earnings Power Value | $2.07 | +124.8% |
Is Ekarat Engineering PCL (AKR.BK) undervalued or overvalued?
With the current market price at $0.92, 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 Ekarat Engineering PCL'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 | 2.6% | 3.1% |
| Equity market risk premium | 7.4% | 8.4% |
| Adjusted beta | 0.65 | 1.14 |
| Cost of equity | 7.4% | 13.2% |
| Cost of debt | 4.0% | 7.9% |
| Tax rate | 20.0% | 20.6% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 6.8% | 12.3% |
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 | $2 | $3,363M | 66.9% |
| 10-Year Growth | $3 | $3,673M | 45.7% |
| 5-Year EBITDA | $2 | $2,820M | 60.5% |
| 10-Year EBITDA | $2 | $3,418M | 41.6% |
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 | $245M |
| Discount Rate (WACC) | 12.3% - 6.8% |
| Enterprise Value | $1,994M - $3,586M |
| Net Debt | $(254)M |
| Equity Value | $2,248M - $3,840M |
| Outstanding Shares | 1,472M |
| Fair Value | $2 - $3 |
| Selected Fair Value | $2.07 |
| Metric | Value |
|---|---|
| Market Capitalization | $1354M |
| Enterprise Value | $1100M |
| Trailing P/E | 4.06 |
| Forward P/E | 4.35 |
| Trailing EV/EBITDA | 4.90 |
| Current Dividend Yield | 698.75% |
| Dividend Growth Rate (5Y) | 21.06% |
| Debt-to-Equity Ratio | 0.15 |
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% | $0.80 |
| Discounted Cash Flow (5Y) | 25% | $0.61 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.34 |
| Dividend Discount Model (Stable) | 15% | $0.33 |
| Earnings Power Value | 10% | $0.21 |
| Weighted Average | 100% | $2.29 |
Based on our comprehensive valuation analysis, Ekarat Engineering PCL's intrinsic value is $2.29, which is approximately 148.9% above the current market price of $0.92.
Key investment considerations:
Given these factors, we believe Ekarat Engineering PCL is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.