What is DOC.V's Intrinsic value?

CloudMD Software & Services Inc (DOC.V) Intrinsic Value Analysis

Executive Summary

As of June 17, 2025, CloudMD Software & Services Inc's estimated intrinsic value ranges from $0.09 to $0.09 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.09 +145.5%

Is CloudMD Software & Services Inc (DOC.V) undervalued or overvalued?

With the current market price at $0.04, 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 CloudMD Software & Services 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 5.1% 6.1%
Adjusted beta 0.92 0.99
Cost of equity 8.5% 10.9%
Cost of debt 5.0% 5.0%
Tax rate 1.7% 1.8%
Debt/Equity ratio 2.19 2.19
After-tax WACC 6.1% 6.8%

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 $3M
Discount Rate (WACC) 6.8% - 6.1%
Enterprise Value $43M - $48M
Net Debt $19M
Equity Value $24M - $29M
Outstanding Shares 305M
Fair Value $0 - $0
Selected Fair Value $0.09

Key Financial Metrics

Metric Value
Market Capitalization $11M
Enterprise Value $30M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 9.20
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 2.19

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% $0.01
Weighted Average 100% $0.09

Investment Conclusion

Based on our comprehensive valuation analysis, CloudMD Software & Services Inc's weighted average intrinsic value is $0.09, which is approximately 145.5% above the current market price of $0.04.

Key investment considerations:

  • Strong projected earnings growth (-84% to -73% margin)
  • Consistent cash flow generation

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