What is BYT.CN's Intrinsic value?

BYT Holdings Ltd (BYT.CN) Intrinsic Value Analysis

Executive Summary

As of May 23, 2025, BYT Holdings Ltd's estimated intrinsic value ranges from $0.06 to $0.06 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $0.06 +115.9%

Is BYT Holdings Ltd (BYT.CN) undervalued or overvalued?

With the current market price at $0.03, 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 BYT Holdings Ltd'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 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.25 0.37
Cost of equity 5.4% 7.4%
Cost of debt 7.0% 7.0%
Tax rate 1.5% 2.9%
Debt/Equity ratio 0.43 0.43
After-tax WACC 5.9% 7.2%

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: 10-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 6.5% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $4 (FY12-2023) to $4 (FY12-2033)
  • Net profit margin expansion from -11% to 4%
  • Capital expenditures maintained at approximately 5% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $(1,234) $(4)M 85.8%
10-Year Growth $0 $2M 120.4%
5-Year EBITDA $0 $(0)M 143.8%
10-Year EBITDA $0 $0M 191.0%

Key Financial Metrics

Metric Value
Market Capitalization $2M
Enterprise Value $-1M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 4.05
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.43

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) 100% $0.02
Weighted Average 100% $0.06

Investment Conclusion

Based on our comprehensive valuation analysis, BYT Holdings Ltd's weighted average intrinsic value is $0.06, which is approximately 115.9% above the current market price of $0.03.

Key investment considerations:

  • Strong projected earnings growth (-11% to 4% margin)

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