As of May 23, 2025, Colabor Group Inc's estimated intrinsic value ranges from $0.14 to $8.92 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $8.92 | +974.9% |
| Discounted Cash Flow (5Y) | $7.46 | +798.4% |
| Dividend Discount Model (Multi-Stage) | $4.39 | +429.1% |
| Dividend Discount Model (Stable) | $0.14 | -83.3% |
| Earnings Power Value | $3.30 | +297.5% |
Is Colabor Group Inc (GCL.TO) undervalued or overvalued?
With the current market price at $0.83, 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 Colabor 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 | 1 | 1.21 |
| Cost of equity | 8.3% | 11.5% |
| Cost of debt | 8.4% | 8.4% |
| Tax rate | 24.6% | 26.0% |
| Debt/Equity ratio | 1.04 | 1.04 |
| After-tax WACC | 7.3% | 8.8% |
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 | $7 | $926M | 83.2% |
| 10-Year Growth | $9 | $1,076M | 68.1% |
| 5-Year EBITDA | $4 | $606M | 74.3% |
| 10-Year EBITDA | $6 | $754M | 54.5% |
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 | $40M |
| Discount Rate (WACC) | 8.8% - 7.3% |
| Enterprise Value | $454M - $550M |
| Net Debt | $166M |
| Equity Value | $288M - $385M |
| Outstanding Shares | 102M |
| Fair Value | $3 - $4 |
| Selected Fair Value | $3.30 |
| Metric | Value |
|---|---|
| Market Capitalization | $85M |
| Enterprise Value | $250M |
| Trailing P/E | 94.60 |
| Forward P/E | 6.03 |
| Trailing EV/EBITDA | 8.80 |
| Current Dividend Yield | 640.11% |
| Dividend Growth Rate (5Y) | -21.16% |
| Debt-to-Equity Ratio | 1.04 |
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% | $2.68 |
| Discounted Cash Flow (5Y) | 25% | $1.86 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.88 |
| Dividend Discount Model (Stable) | 15% | $0.02 |
| Earnings Power Value | 10% | $0.33 |
| Weighted Average | 100% | $5.77 |
Based on our comprehensive valuation analysis, Colabor Group Inc's weighted average intrinsic value is $5.77, which is approximately 595.2% above the current market price of $0.83.
Key investment considerations:
Given these factors, we believe Colabor Group Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.