What is DPWW's Intrinsic value?

Diego Pellicer Worldwide Inc (DPWW) Intrinsic Value Analysis

Executive Summary

As of June 17, 2025, Diego Pellicer Worldwide Inc's estimated intrinsic value ranges from $0.01 to $0.01 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Multi-Stage) $0.01 +7914.1%

Is Diego Pellicer Worldwide Inc (DPWW) undervalued or overvalued?

With the current market price at $0.00, 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 Diego Pellicer Worldwide Inc's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

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 1.67 16.29
Cost of equity 11.5% 96.1%
Cost of debt 4.0% 7.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 128.79 128.79
After-tax WACC 3.0% 5.8%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 53.8%
  • Long-term growth rate: 2.4%
  • Fair value: $0.01 (7914.1% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 96.1% (Low) to 11.5% (High)
  • Long-term growth rate: 2.0% (Low) to 2.8% (High)
  • Fair value range: $(0) to $(0)
  • Selected fair value: $-0.04 (-42216.9% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $3M
Trailing P/E 0.00
Forward P/E 0.01
Trailing EV/EBITDA 7.50
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 128.79

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
Dividend Discount Model (Multi-Stage) 100% $0.00
Weighted Average 100% $0.01

Investment Conclusion

Based on our comprehensive valuation analysis, Diego Pellicer Worldwide Inc's weighted average intrinsic value is $0.01, which is approximately 7914.1% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (387% to 298% margin)
  • Consistent cash flow generation

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