What is CORR's Intrinsic value?

CorEnergy Infrastructure Trust Inc (CORR) Intrinsic Value Analysis

Executive Summary

As of June 15, 2025, CorEnergy Infrastructure Trust Inc's estimated intrinsic value ranges from $16.68 to $16.68 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $16.68 +3606.7%

Is CorEnergy Infrastructure Trust Inc (CORR) undervalued or overvalued?

With the current market price at $0.45, 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 CorEnergy Infrastructure Trust 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 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 10.68 13.15
Cost of equity 53.0% 78.5%
Cost of debt 6.4% 19.9%
Tax rate 5.7% 12.0%
Debt/Equity ratio 62.69 62.69
After-tax WACC 6.8% 18.4%

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 $34M
Discount Rate (WACC) 18.4% - 6.8%
Enterprise Value $186M - $505M
Net Debt $217M
Equity Value $(31)M - $288M
Outstanding Shares 8M
Fair Value $(4) - $37
Selected Fair Value $16.68

Key Financial Metrics

Metric Value
Market Capitalization $3M
Enterprise Value $221M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 13.00
Current Dividend Yield 8518.96%
Dividend Growth Rate (5Y) -28.06%
Debt-to-Equity Ratio 62.69

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% $1.67
Weighted Average 100% $16.68

Investment Conclusion

Based on our comprehensive valuation analysis, CorEnergy Infrastructure Trust Inc's weighted average intrinsic value is $16.68, which is approximately 3606.7% above the current market price of $0.45.

Key investment considerations:

  • Strong projected earnings growth (-7% to -4% margin)
  • Consistent cash flow generation

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