What is BTBB.DE's Intrinsic value?

SLEEPZ AG (BTBB.DE) Intrinsic Value Analysis

Executive Summary

As of June 14, 2025, SLEEPZ AG's estimated intrinsic value ranges from $0.61 to $0.61 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.61 +323.6%

Is SLEEPZ AG (BTBB.DE) undervalued or overvalued?

With the current market price at $0.14, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate SLEEPZ AG's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

Weighted Average Cost of Capital (WACC)

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 2.0% 2.5%
Equity market risk premium 4.7% 5.7%
Adjusted beta 0.59 0.71
Cost of equity 5.3% 7.6%
Cost of debt 5.0% 5.0%
Tax rate 0.0% 0.2%
Debt/Equity ratio 0.4 0.4
After-tax WACC 5.2% 6.8%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $1M
Discount Rate (WACC) 6.8% - 5.2%
Enterprise Value $15M - $19M
Net Debt $3M
Equity Value $12M - $17M
Outstanding Shares 23M
Fair Value $1 - $1
Selected Fair Value $0.61

Key Financial Metrics

Metric Value
Market Capitalization $3M
Enterprise Value $6M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 7.95
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.40

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Earnings Power Value 100% $0.06
Weighted Average 100% $0.61

Investment Conclusion

Based on our comprehensive valuation analysis, SLEEPZ AG's weighted average intrinsic value is $0.61, which is approximately 323.6% above the current market price of $0.14.

Key investment considerations:

  • Strong projected earnings growth (-35% to -17% margin)
  • Consistent cash flow generation

Given these factors, we believe SLEEPZ AG is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.