What is BTX's Intrinsic value?

Brooklyn Immunotherapeutics Inc (BTX) Intrinsic Value Analysis

Executive Summary

As of May 23, 2025, Brooklyn Immunotherapeutics Inc's estimated intrinsic value ranges from $3957.03 to $4486.95 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $4486.95 +67474.5%
Discounted Cash Flow (5Y) $3957.03 +59493.9%

Is Brooklyn Immunotherapeutics Inc (BTX) undervalued or overvalued?

With the current market price at $6.64, 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 Brooklyn Immunotherapeutics Inc's intrinsic value, including:

  1. Discounted Cash Flow (DCF): Values the company based on projected future cash flows

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 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.98 1.13
Cost of equity 8.4% 11.2%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 1 1
After-tax WACC 6.0% 7.4%

Valuation Methods

1. Discounted Cash Flow (DCF) Valuation

Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:

  • Forecast Period: 5-year DCF and 10-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 6.7% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $4 (FY12-2022) to $5 (FY12-2032)
  • Net profit margin expansion from -47189% to -34448%
  • Capital expenditures maintained at approximately 0% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $3,957 $7,410M 73.7%
10-Year Growth $4,487 $8,402M 56.9%
5-Year EBITDA $858 $1,607M 21.0%
10-Year EBITDA $1,776 $3,326M 8.9%

Key Financial Metrics

Metric Value
Market Capitalization $12M
Enterprise Value $13M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 13.30
Current Dividend Yield 183868.33%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.01

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
Discounted Cash Flow (10Y) 55% $1346.08
Discounted Cash Flow (5Y) 45% $989.26
Weighted Average 100% $4246.08

Investment Conclusion

Based on our comprehensive valuation analysis, Brooklyn Immunotherapeutics Inc's weighted average intrinsic value is $4246.08, which is approximately 63846.9% above the current market price of $6.64.

Key investment considerations:

  • Strong projected earnings growth (-47189% to -34448% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.01)

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