What is GHMP's Intrinsic value?

Good Hemp Inc (GHMP) Intrinsic Value Analysis

Executive Summary

As of June 17, 2025, Good Hemp Inc's estimated intrinsic value ranges from $0.00 to $0.00 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.00 +388.6%

Is Good Hemp Inc (GHMP) undervalued or overvalued?

With the current market price at $0.00, 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 Good Hemp Inc's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

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 4.2% 4.7%
Equity market risk premium 5.0% 6.0%
Adjusted beta 0.44 0.57
Cost of equity 6.4% 8.6%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 0.7 0.7
After-tax WACC 5.3% 6.6%

Valuation Methods

3. Earnings Power Value (EPV)

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) 6.6% - 5.3%
Enterprise Value $11M - $14M
Net Debt $1M
Equity Value $10M - $13M
Outstanding Shares 4,695M
Fair Value $0 - $0
Selected Fair Value $0.00

Key Financial Metrics

Metric Value
Market Capitalization $2M
Enterprise Value $3M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 14.50
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.70

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
Earnings Power Value 100% $0.00
Weighted Average 100% $0.00

Investment Conclusion

Based on our comprehensive valuation analysis, Good Hemp Inc's weighted average intrinsic value is $0.00, which is approximately 388.6% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (-388% to -266% margin)
  • Consistent cash flow generation

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