What is CBLAQ's Intrinsic value?

CBL & Associates Properties Inc (CBLAQ) Intrinsic Value Analysis

Executive Summary

As of June 22, 2025, CBL & Associates Properties Inc's estimated intrinsic value ranges from $36.69 to $36.69 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $36.69 +20988.0%

Is CBL & Associates Properties Inc (CBLAQ) undervalued or overvalued?

With the current market price at $0.17, 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 CBL & Associates Properties Inc'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 3.2% 3.7%
Equity market risk premium 4.2% 5.2%
Adjusted beta 8.23 9.62
Cost of equity 38.0% 54.6%
Cost of debt 4.6% 8.0%
Tax rate 2.1% 2.6%
Debt/Equity ratio 34.64 34.64
After-tax WACC 5.4% 9.1%

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 $547M
Discount Rate (WACC) 9.1% - 5.4%
Enterprise Value $5,991M - $10,122M
Net Debt $844M
Equity Value $5,147M - $9,278M
Outstanding Shares 197M
Fair Value $26 - $47
Selected Fair Value $36.69

Key Financial Metrics

Metric Value
Market Capitalization $34M
Enterprise Value $878M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 11.95
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) -100.00%
Debt-to-Equity Ratio 34.64

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% $3.67
Weighted Average 100% $36.69

Investment Conclusion

Based on our comprehensive valuation analysis, CBL & Associates Properties Inc's weighted average intrinsic value is $36.69, which is approximately 20988.0% above the current market price of $0.17.

Key investment considerations:

  • Strong projected earnings growth (-58% to -46% margin)
  • Consistent cash flow generation

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