As of December 15, 2025, Boyd Group Services Inc's estimated intrinsic value ranges from $20.40 to $516.32 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $516.32 | +133.4% |
| Discounted Cash Flow (5Y) | $302.48 | +36.7% |
| Dividend Discount Model (Multi-Stage) | $261.56 | +18.2% |
| Dividend Discount Model (Stable) | $20.40 | -90.8% |
| Earnings Power Value | $457.38 | +106.7% |
Is Boyd Group Services Inc (BYD.TO) undervalued or overvalued?
With the current market price at $221.25, 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 Boyd Group Services 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 | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.66 | 0.77 |
| Cost of equity | 6.5% | 8.9% |
| Cost of debt | 7.9% | 14.9% |
| Tax rate | 26.3% | 27.2% |
| Debt/Equity ratio | 0.2 | 0.2 |
| After-tax WACC | 6.4% | 9.2% |
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 | $302 | $9,700M | 87.0% |
| 10-Year Growth | $516 | $15,651M | 76.8% |
| 5-Year EBITDA | $189 | $6,545M | 80.7% |
| 10-Year EBITDA | $344 | $10,857M | 66.6% |
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 | $1,059M |
| Discount Rate (WACC) | 9.2% - 6.4% |
| Enterprise Value | $11,505M - $16,516M |
| Net Debt | $1,282M |
| Equity Value | $10,223M - $15,235M |
| Outstanding Shares | 28M |
| Fair Value | $367 - $547 |
| Selected Fair Value | $457.38 |
| Metric | Value |
|---|---|
| Market Capitalization | $6157M |
| Enterprise Value | $7439M |
| Trailing P/E | 383.11 |
| Forward P/E | 72.29 |
| Trailing EV/EBITDA | 10.80 |
| Current Dividend Yield | 15.20% |
| Dividend Growth Rate (5Y) | 7.02% |
| Debt-to-Equity Ratio | 0.20 |
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% | $154.90 |
| Discounted Cash Flow (5Y) | 25% | $75.62 |
| Dividend Discount Model (Multi-Stage) | 20% | $52.31 |
| Dividend Discount Model (Stable) | 15% | $3.06 |
| Earnings Power Value | 10% | $45.74 |
| Weighted Average | 100% | $331.63 |
Based on our comprehensive valuation analysis, Boyd Group Services Inc's intrinsic value is $331.63, which is approximately 49.9% above the current market price of $221.25.
Key investment considerations:
Given these factors, we believe Boyd Group Services Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.