As of June 5, 2025, Enterprise Group Inc's estimated intrinsic value ranges from $1.15 to $4.18 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $4.18 | +150.3% |
| Discounted Cash Flow (5Y) | $2.35 | +40.6% |
| Dividend Discount Model (Multi-Stage) | $2.29 | +37.3% |
| Dividend Discount Model (Stable) | $1.15 | -30.9% |
| Earnings Power Value | $1.56 | -6.4% |
Is Enterprise Group Inc (E.TO) undervalued or overvalued?
With the current market price at $1.67, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Enterprise Group 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 | 5.1% | 6.1% |
| Adjusted beta | 0.41 | 0.55 |
| Cost of equity | 5.3% | 7.5% |
| Cost of debt | 6.8% | 10.4% |
| Tax rate | 1.0% | 2.1% |
| Debt/Equity ratio | 0.22 | 0.22 |
| After-tax WACC | 5.5% | 8.0% |
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 | $2 | $180M | 81.5% |
| 10-Year Growth | $4 | $322M | 72.3% |
| 5-Year EBITDA | $6 | $439M | 92.4% |
| 10-Year EBITDA | $8 | $587M | 84.8% |
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 | $8M |
| Discount Rate (WACC) | 8.0% - 5.5% |
| Enterprise Value | $97M - $141M |
| Net Debt | $(2)M |
| Equity Value | $99M - $143M |
| Outstanding Shares | 78M |
| Fair Value | $1 - $2 |
| Selected Fair Value | $1.56 |
| Metric | Value |
|---|---|
| Market Capitalization | $129M |
| Enterprise Value | $127M |
| Trailing P/E | 36.68 |
| Forward P/E | 21.93 |
| Trailing EV/EBITDA | 16.00 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.22 |
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% | $1.25 |
| Discounted Cash Flow (5Y) | 25% | $0.59 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.46 |
| Dividend Discount Model (Stable) | 15% | $0.17 |
| Earnings Power Value | 10% | $0.16 |
| Weighted Average | 100% | $2.63 |
Based on our comprehensive valuation analysis, Enterprise Group Inc's weighted average intrinsic value is $2.63, which is approximately 57.4% above the current market price of $1.67.
Key investment considerations:
Given these factors, we believe Enterprise Group Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.