What is DEV.WA's Intrinsic value?

Devoran SA (DEV.WA) Intrinsic Value Analysis

Executive Summary

As of June 29, 2025, Devoran SA's estimated intrinsic value ranges from $0.03 to $0.03 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.03 -56.4%

Is Devoran SA (DEV.WA) undervalued or overvalued?

With the current market price at $0.06, the stock appears to be significantly overvalued.

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 Devoran SA'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 5.5% 6.0%
Equity market risk premium 6.3% 7.3%
Adjusted beta 0.44 0.78
Cost of equity 8.3% 12.3%
Cost of debt 5.0% 5.0%
Tax rate 19.0% 19.0%
Debt/Equity ratio 0.1 0.1
After-tax WACC 7.9% 11.5%

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 $0M
Discount Rate (WACC) 10.4% - 8.1%
Enterprise Value $3M - $4M
Net Debt $2M
Equity Value $1M - $2M
Outstanding Shares 71M
Fair Value $0 - $0
Selected Fair Value $0.03

Key Financial Metrics

Metric Value
Market Capitalization $4M
Enterprise Value $4M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 7.35
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.10

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% $0.00
Weighted Average 100% $0.03

Investment Conclusion

Based on our comprehensive valuation analysis, Devoran SA's weighted average intrinsic value is $0.03, which is approximately 56.4% below the current market price of $0.06.

Key investment considerations:

  • Strong projected earnings growth (-64% to -21% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.10)

Given these factors, we believe Devoran SA is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.