As of June 21, 2025, EuroSite Power Inc's estimated intrinsic value ranges from $0.06 to $0.13 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $0.06 | +64.4% |
| Dividend Discount Model (Multi-Stage) | $0.07 | +102.5% |
| Earnings Power Value | $0.13 | +265.0% |
Is EuroSite Power Inc (EUSP) undervalued or overvalued?
With the current market price at $0.04, 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 EuroSite Power 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 | 0.48 | 0.67 |
| Cost of equity | 6.1% | 8.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 7.7% | 19.3% |
| Debt/Equity ratio | 0.2 | 0.2 |
| After-tax WACC | 5.8% | 7.9% |
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 | $(1,234) | $(4)M | 58.2% |
| 10-Year Growth | $0 | $2M | 154.1% |
| 5-Year EBITDA | $0 | $7M | 123.5% |
| 10-Year EBITDA | $0 | $12M | 108.0% |
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 | $1M |
| Discount Rate (WACC) | 7.9% - 5.8% |
| Enterprise Value | $7M - $9M |
| Net Debt | $(3)M |
| Equity Value | $10M - $12M |
| Outstanding Shares | 82M |
| Fair Value | $0 - $0 |
| Selected Fair Value | $0.13 |
| Metric | Value |
|---|---|
| Market Capitalization | $3M |
| Enterprise Value | $-0M |
| Trailing P/E | 0.00 |
| Forward P/E | 105.95 |
| Trailing EV/EBITDA | 8.75 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.20 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 50% | $0.02 |
| Dividend Discount Model (Multi-Stage) | 33% | $0.01 |
| Earnings Power Value | 17% | $0.01 |
| Weighted Average | 100% | $0.08 |
Based on our comprehensive valuation analysis, EuroSite Power Inc's weighted average intrinsic value is $0.08, which is approximately 110.5% above the current market price of $0.04.
Key investment considerations:
Given these factors, we believe EuroSite Power Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.