As of June 4, 2025, Colliers International Group Inc's estimated intrinsic value ranges from $69.76 to $319.56 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $319.56 | +92.1% |
| Discounted Cash Flow (5Y) | $235.08 | +41.3% |
| Dividend Discount Model (Multi-Stage) | $165.95 | -0.3% |
| Dividend Discount Model (Stable) | $69.76 | -58.1% |
| Earnings Power Value | $133.06 | -20.0% |
Is Colliers International Group Inc (CIGI.TO) undervalued or overvalued?
With the current market price at $166.39, 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 Colliers International Group 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 | 0.92 | 1.05 |
| Cost of equity | 7.9% | 10.6% |
| Cost of debt | 4.9% | 4.9% |
| Tax rate | 31.5% | 32.3% |
| Debt/Equity ratio | 0.26 | 0.26 |
| After-tax WACC | 6.9% | 9.1% |
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 | $171 | $10,222M | 82.6% |
| 10-Year Growth | $233 | $13,334M | 69.8% |
| 5-Year EBITDA | $135 | $8,409M | 78.9% |
| 10-Year EBITDA | $188 | $11,095M | 63.8% |
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 | $508M |
| Discount Rate (WACC) | 9.1% - 6.9% |
| Enterprise Value | $5,595M - $7,332M |
| Net Debt | $1,562M |
| Equity Value | $4,034M - $5,770M |
| Outstanding Shares | 51M |
| Fair Value | $80 - $114 |
| Selected Fair Value | $133.06 |
| Metric | Value |
|---|---|
| Market Capitalization | $8423M |
| Enterprise Value | $10569M |
| Trailing P/E | 42.33 |
| Forward P/E | 21.37 |
| Trailing EV/EBITDA | 10.00 |
| Current Dividend Yield | 24.82% |
| Dividend Growth Rate (5Y) | 38.40% |
| Debt-to-Equity Ratio | 0.26 |
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% | $95.87 |
| Discounted Cash Flow (5Y) | 25% | $58.77 |
| Dividend Discount Model (Multi-Stage) | 20% | $33.19 |
| Dividend Discount Model (Stable) | 15% | $10.46 |
| Earnings Power Value | 10% | $13.31 |
| Weighted Average | 100% | $211.60 |
Based on our comprehensive valuation analysis, Colliers International Group Inc's weighted average intrinsic value is $211.60, which is approximately 27.2% above the current market price of $166.39.
Key investment considerations:
Given these factors, we believe Colliers International Group Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.