As of June 6, 2025, Computer Services Inc's estimated intrinsic value ranges from $18.89 to $125.80 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $45.52 | -21.0% |
| Discounted Cash Flow (5Y) | $39.75 | -31.0% |
| Dividend Discount Model (Multi-Stage) | $18.89 | -67.2% |
| Dividend Discount Model (Stable) | $19.40 | -66.3% |
| Earnings Power Value | $125.80 | +118.4% |
Is Computer Services Inc (CSVI) undervalued or overvalued?
With the current market price at $57.60, 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 Computer Services 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 | 4.2% | 5.2% |
| Adjusted beta | 1.32 | 1.53 |
| Cost of equity | 8.8% | 12.2% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 22.1% | 23.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.9% | 7.8% |
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 | $40 | $1,027M | 74.2% |
| 10-Year Growth | $46 | $1,188M | 57.0% |
| 5-Year EBITDA | $38 | $1,052M | 74.8% |
| 10-Year EBITDA | $43 | $1,204M | 57.6% |
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 | $231M |
| Discount Rate (WACC) | 7.8% - 5.9% |
| Enterprise Value | $2,947M - $3,886M |
| Net Debt | $(76)M |
| Equity Value | $3,023M - $3,962M |
| Outstanding Shares | 28M |
| Fair Value | $109 - $143 |
| Selected Fair Value | $125.80 |
| Metric | Value |
|---|---|
| Market Capitalization | $1599M |
| Enterprise Value | $1599M |
| Trailing P/E | 0.00 |
| Forward P/E | 24.45 |
| Trailing EV/EBITDA | 9.75 |
| Current Dividend Yield | 186.30% |
| Dividend Growth Rate (5Y) | 15.79% |
| Debt-to-Equity Ratio | 0.90 |
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% | $13.65 |
| Discounted Cash Flow (5Y) | 25% | $9.94 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.78 |
| Dividend Discount Model (Stable) | 15% | $2.91 |
| Earnings Power Value | 10% | $12.58 |
| Weighted Average | 100% | $42.86 |
Based on our comprehensive valuation analysis, Computer Services Inc's weighted average intrinsic value is $42.86, which is approximately 25.6% below the current market price of $57.60.
Key investment considerations:
Given these factors, we believe Computer Services Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.