As of June 21, 2025, Coda Octopus Group Inc's estimated intrinsic value ranges from $3.33 to $10.32 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $10.32 | +34.2% |
| Discounted Cash Flow (5Y) | $7.69 | -0.0% |
| Dividend Discount Model (Multi-Stage) | $5.03 | -34.6% |
| Dividend Discount Model (Stable) | $3.33 | -56.6% |
| Earnings Power Value | $5.34 | -30.6% |
Is Coda Octopus Group Inc (CODA) undervalued or overvalued?
With the current market price at $7.69, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Coda Octopus 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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 1.47 | 1.76 |
| Cost of equity | 10.6% | 14.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 7.6% | 11.7% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 7.6% | 9.6% |
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 | $8 | $64M | 79.5% |
| 10-Year Growth | $10 | $93M | 65.6% |
| 5-Year EBITDA | $13 | $129M | 89.8% |
| 10-Year EBITDA | $15 | $145M | 77.9% |
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 | $3M |
| Discount Rate (WACC) | 9.6% - 7.6% |
| Enterprise Value | $33M - $42M |
| Net Debt | $(23)M |
| Equity Value | $56M - $64M |
| Outstanding Shares | 11M |
| Fair Value | $5 - $6 |
| Selected Fair Value | $5.34 |
| Metric | Value |
|---|---|
| Market Capitalization | $86M |
| Enterprise Value | $64M |
| Trailing P/E | 21.98 |
| Forward P/E | 15.18 |
| Trailing EV/EBITDA | 18.30 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.00 |
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% | $3.10 |
| Discounted Cash Flow (5Y) | 25% | $1.92 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.01 |
| Dividend Discount Model (Stable) | 15% | $0.50 |
| Earnings Power Value | 10% | $0.53 |
| Weighted Average | 100% | $7.06 |
Based on our comprehensive valuation analysis, Coda Octopus Group Inc's weighted average intrinsic value is $7.06, which is approximately 8.2% below the current market price of $7.69.
Key investment considerations:
Given these factors, we believe Coda Octopus Group Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.