What is ETI.CN's Intrinsic value?

Enviroleach Technologies Inc (ETI.CN) Intrinsic Value Analysis

Executive Summary

As of June 13, 2025, Enviroleach Technologies Inc's estimated intrinsic value ranges from $0.85 to $0.85 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Stable) $0.85 +8428.6%

Is Enviroleach Technologies Inc (ETI.CN) undervalued or overvalued?

With the current market price at $0.01, 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 Enviroleach Technologies 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 3.2% 3.7%
Equity market risk premium 5.1% 6.1%
Adjusted beta 0.29 0.34
Cost of equity 4.6% 6.2%
Cost of debt 5.0% 5.0%
Tax rate 25.9% 26.5%
Debt/Equity ratio 0.05 0.05
After-tax WACC 4.6% 6.1%

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: 5.4%
  • Long-term growth rate: 4.0%
  • Fair value: $-0.27 (-2781.9% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 6.2% (Low) to 4.6% (High)
  • Long-term growth rate: 3.0% (Low) to 5.0% (High)
  • Fair value range: $(0) to $2
  • Selected fair value: $0.85 (8428.6% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $2M
Enterprise Value $2M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 2.10
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.05

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 (Stable) 100% $0.13
Weighted Average 100% $0.85

Investment Conclusion

Based on our comprehensive valuation analysis, Enviroleach Technologies Inc's weighted average intrinsic value is $0.85, which is approximately 8428.6% above the current market price of $0.01.

Key investment considerations:

  • Strong projected earnings growth (-109% to -60% margin)
  • Consistent cash flow generation
  • Conservative capital structure (Debt/Equity of 0.05)

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