As of May 22, 2025, eXp World Holdings Inc's estimated intrinsic value ranges from $1.43 to $68.49 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $68.49 | +805.9% |
| Discounted Cash Flow (5Y) | $40.74 | +438.9% |
| Dividend Discount Model (Multi-Stage) | $19.59 | +159.2% |
| Earnings Power Value | $1.43 | -81.1% |
Is eXp World Holdings Inc (EXPI) undervalued or overvalued?
With the current market price at $7.56, 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 eXp World Holdings 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 | 0.84 | 1.18 |
| Cost of equity | 7.7% | 11.5% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.7% | 7.6% |
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 | $41 | $6,080M | 84.9% |
| 10-Year Growth | $68 | $10,297M | 73.2% |
| 5-Year EBITDA | $29 | $4,249M | 78.4% |
| 10-Year EBITDA | $50 | $7,491M | 63.2% |
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 | $7M |
| Discount Rate (WACC) | 7.6% - 5.7% |
| Enterprise Value | $89M - $118M |
| Net Debt | $(114)M |
| Equity Value | $202M - $231M |
| Outstanding Shares | 152M |
| Fair Value | $1 - $2 |
| Selected Fair Value | $1.43 |
| Metric | Value |
|---|---|
| Market Capitalization | $1149M |
| Enterprise Value | $1036M |
| Trailing P/E | 0.00 |
| Forward P/E | 21.04 |
| Trailing EV/EBITDA | 9.55 |
| Current Dividend Yield | 247.51% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.02 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $20.55 |
| Discounted Cash Flow (5Y) | 29% | $10.19 |
| Dividend Discount Model (Multi-Stage) | 24% | $3.92 |
| Earnings Power Value | 12% | $0.14 |
| Weighted Average | 100% | $40.93 |
Based on our comprehensive valuation analysis, eXp World Holdings Inc's weighted average intrinsic value is $40.93, which is approximately 441.5% above the current market price of $7.56.
Key investment considerations:
Given these factors, we believe eXp World Holdings Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.