As of June 16, 2025, Electronic Systems Technology Inc's estimated intrinsic value ranges from $4.97 to $4.97 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Earnings Power Value | $4.97 | +3004.0% |
Is Electronic Systems Technology Inc (ELST) undervalued or overvalued?
With the current market price at $0.16, 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 Electronic Systems Technology 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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.27 | 0.34 |
| Cost of equity | 5.1% | 6.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 4.4% | 5.2% |
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1M |
| Discount Rate (WACC) | 5.2% - 4.4% |
| Enterprise Value | $12M - $14M |
| Net Debt | $(0)M |
| Equity Value | $12M - $14M |
| Outstanding Shares | 3M |
| Fair Value | $5 - $5 |
| Selected Fair Value | $4.97 |
| Metric | Value |
|---|---|
| Market Capitalization | $0M |
| Enterprise Value | $0M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 1.10 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.88 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Earnings Power Value | 100% | $0.50 |
| Weighted Average | 100% | $4.97 |
Based on our comprehensive valuation analysis, Electronic Systems Technology Inc's weighted average intrinsic value is $4.97, which is approximately 3004.0% above the current market price of $0.16.
Key investment considerations:
Given these factors, we believe Electronic Systems Technology Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.