As of May 27, 2025, Corsair Gaming Inc's estimated intrinsic value ranges from $1.30 to $3.06 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2.40 | -70.9% |
| Dividend Discount Model (Multi-Stage) | $1.30 | -84.2% |
| Earnings Power Value | $3.06 | -62.9% |
Is Corsair Gaming Inc (CRSR) undervalued or overvalued?
With the current market price at $8.23, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Corsair Gaming 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 | 1.16 | 1.39 |
| Cost of equity | 9.2% | 12.7% |
| Cost of debt | 5.2% | 7.0% |
| Tax rate | 15.4% | 23.3% |
| Debt/Equity ratio | 0.2 | 0.2 |
| After-tax WACC | 8.4% | 11.4% |
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 | $(1,234) | $12M | 482.7% |
| 10-Year Growth | $2 | $303M | 80.8% |
| 5-Year EBITDA | $1 | $117M | 140.8% |
| 10-Year EBITDA | $2 | $262M | 77.8% |
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 | $36M |
| Discount Rate (WACC) | 11.4% - 8.4% |
| Enterprise Value | $315M - $429M |
| Net Debt | $49M |
| Equity Value | $266M - $381M |
| Outstanding Shares | 106M |
| Fair Value | $3 - $4 |
| Selected Fair Value | $3.06 |
| Metric | Value |
|---|---|
| Market Capitalization | $871M |
| Enterprise Value | $920M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 5.10 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.20 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 50% | $0.72 |
| Dividend Discount Model (Multi-Stage) | 33% | $0.26 |
| Earnings Power Value | 17% | $0.31 |
| Weighted Average | 100% | $2.14 |
Based on our comprehensive valuation analysis, Corsair Gaming Inc's weighted average intrinsic value is $2.14, which is approximately 74.0% below the current market price of $8.23.
Key investment considerations:
Given these factors, we believe Corsair Gaming Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.