As of May 23, 2025, TronicS Microsystems SA's estimated intrinsic value ranges from $2.09 to $7.19 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $7.19 | +63.4% |
| Discounted Cash Flow (5Y) | $3.94 | -10.4% |
| Dividend Discount Model (Multi-Stage) | $5.01 | +13.9% |
| Dividend Discount Model (Stable) | $6.64 | +50.9% |
| Earnings Power Value | $2.09 | -52.5% |
Is TronicS Microsystems SA (ALTRO.PA) undervalued or overvalued?
With the current market price at $4.40, 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 TronicS Microsystems SA'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 | 3.0% | 3.5% |
| Equity market risk premium | 5.8% | 6.8% |
| Adjusted beta | 0.47 | 0.81 |
| Cost of equity | 5.8% | 9.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 2.2% | 4.1% |
| Debt/Equity ratio | 0.28 | 0.28 |
| After-tax WACC | 5.6% | 8.5% |
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 | $4 | $56M | 90.5% |
| 10-Year Growth | $7 | $92M | 81.7% |
| 5-Year EBITDA | $2 | $28M | 81.4% |
| 10-Year EBITDA | $3 | $46M | 63.0% |
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 | $2M |
| Discount Rate (WACC) | 8.5% - 5.6% |
| Enterprise Value | $28M - $42M |
| Net Debt | $11M |
| Equity Value | $16M - $31M |
| Outstanding Shares | 11M |
| Fair Value | $1 - $3 |
| Selected Fair Value | $2.09 |
| Metric | Value |
|---|---|
| Market Capitalization | $50M |
| Enterprise Value | $61M |
| Trailing P/E | 42.97 |
| Forward P/E | 35.22 |
| Trailing EV/EBITDA | 5.65 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.28 |
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% | $2.16 |
| Discounted Cash Flow (5Y) | 25% | $0.99 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.00 |
| Dividend Discount Model (Stable) | 15% | $1.00 |
| Earnings Power Value | 10% | $0.21 |
| Weighted Average | 100% | $5.35 |
Based on our comprehensive valuation analysis, TronicS Microsystems SA's weighted average intrinsic value is $5.35, which is approximately 21.6% above the current market price of $4.40.
Key investment considerations:
Given these factors, we believe TronicS Microsystems SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.