As of June 10, 2025, Bon-Ton Stores Inc's estimated intrinsic value ranges from $0.00 to $67.15 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $67.15 | +6715280900.0% |
| Discounted Cash Flow (5Y) | $52.66 | +5265593200.0% |
| Dividend Discount Model (Multi-Stage) | $0.00 | +35.7% |
| Earnings Power Value | $35.58 | +3557981900.0% |
Is Bon-Ton Stores Inc (BONTQ) undervalued or overvalued?
With the current market price at $0.00, 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 Bon-Ton Stores 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 | 491026.36 | 5.70921569e+06 |
| Cost of equity | 2258725.1% | 31971612.7% |
| Cost of debt | 7.0% | 7.0% |
| Tax rate | 2.4% | 2.7% |
| Debt/Equity ratio | 4.754055742e+07 | 4.754055742e+07 |
| After-tax WACC | 6.9% | 7.5% |
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 | $53 | $2,234M | 82.3% |
| 10-Year Growth | $67 | $2,536M | 65.0% |
| 5-Year EBITDA | $(1,234) | $1,081M | 63.4% |
| 10-Year EBITDA | $18 | $1,517M | 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 | $135M |
| Discount Rate (WACC) | 7.5% - 6.9% |
| Enterprise Value | $1,798M - $1,960M |
| Net Debt | $1,138M |
| Equity Value | $660M - $821M |
| Outstanding Shares | 21M |
| Fair Value | $32 - $39 |
| Selected Fair Value | $35.58 |
| Metric | Value |
|---|---|
| Market Capitalization | $0M |
| Enterprise Value | $1138M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 4.65 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | -100.00% |
| Debt-to-Equity Ratio | 47540556.00 |
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% | $20.15 |
| Discounted Cash Flow (5Y) | 29% | $13.16 |
| Dividend Discount Model (Multi-Stage) | 24% | $0.00 |
| Earnings Power Value | 12% | $3.56 |
| Weighted Average | 100% | $43.37 |
Based on our comprehensive valuation analysis, Bon-Ton Stores Inc's weighted average intrinsic value is $43.37, which is approximately 4337389137.8% above the current market price of $0.00.
Key investment considerations:
Given these factors, we believe Bon-Ton Stores Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.