What is BULL.CN's Intrinsic value?

Canadian Palladium Resources Inc (BULL.CN) Intrinsic Value Analysis

Executive Summary

As of June 8, 2025, Canadian Palladium Resources Inc's estimated intrinsic value ranges from $18.35 to $18.35 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Stable) $18.35 +24371.1%

Is Canadian Palladium Resources Inc (BULL.CN) undervalued or overvalued?

With the current market price at $0.07, 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 Canadian Palladium Resources Inc's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

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 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.28 0.43
Cost of equity 4.6% 6.8%
Cost of debt 5.0% 5.0%
Tax rate 25.9% 26.5%
Debt/Equity ratio 0.12 0.12
After-tax WACC 4.5% 6.4%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 5.7%
  • Long-term growth rate: 4.0%
  • Fair value: $-8.61 (-11582.9% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 6.8% (Low) to 4.6% (High)
  • Long-term growth rate: 3.0% (Low) to 5.0% (High)
  • Fair value range: $(4) to $40
  • Selected fair value: $18.35 (24371.1% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $2M
Enterprise Value $3M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 0.00
Current Dividend Yield 58.51%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.12

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
Dividend Discount Model (Stable) 100% $2.75
Weighted Average 100% $18.35

Investment Conclusion

Based on our comprehensive valuation analysis, Canadian Palladium Resources Inc's weighted average intrinsic value is $18.35, which is approximately 24371.1% above the current market price of $0.07.

Key investment considerations:

  • Conservative capital structure (Debt/Equity of 0.12)

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