As of May 27, 2025, Greystone Logistics Inc's estimated intrinsic value ranges from $1.54 to $2.90 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2.90 | +123.2% |
| Discounted Cash Flow (5Y) | $2.75 | +111.2% |
| Dividend Discount Model (Multi-Stage) | $1.79 | +38.1% |
| Dividend Discount Model (Stable) | $1.54 | +18.5% |
| Earnings Power Value | $1.83 | +40.6% |
Is Greystone Logistics Inc (GLGI) undervalued or overvalued?
With the current market price at $1.30, 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 Greystone Logistics 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 | 0.34 | 0.92 |
| Cost of equity | 5.4% | 10.0% |
| Cost of debt | 5.8% | 7.0% |
| Tax rate | 14.4% | 21.3% |
| Debt/Equity ratio | 0.37 | 0.37 |
| After-tax WACC | 5.3% | 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 | $3 | $84M | 74.7% |
| 10-Year Growth | $3 | $88M | 55.1% |
| 5-Year EBITDA | $2 | $63M | 66.3% |
| 10-Year EBITDA | $2 | $73M | 45.7% |
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 | $4M |
| Discount Rate (WACC) | 8.8% - 5.3% |
| Enterprise Value | $44M - $73M |
| Net Debt | $8M |
| Equity Value | $36M - $65M |
| Outstanding Shares | 28M |
| Fair Value | $1 - $2 |
| Selected Fair Value | $1.83 |
| Metric | Value |
|---|---|
| Market Capitalization | $36M |
| Enterprise Value | $44M |
| Trailing P/E | 11.56 |
| Forward P/E | 8.61 |
| Trailing EV/EBITDA | 5.05 |
| Current Dividend Yield | 186.89% |
| Dividend Growth Rate (5Y) | 14.02% |
| Debt-to-Equity Ratio | 0.37 |
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% | $0.87 |
| Discounted Cash Flow (5Y) | 25% | $0.69 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.36 |
| Dividend Discount Model (Stable) | 15% | $0.23 |
| Earnings Power Value | 10% | $0.18 |
| Weighted Average | 100% | $2.33 |
Based on our comprehensive valuation analysis, Greystone Logistics Inc's weighted average intrinsic value is $2.33, which is approximately 79.2% above the current market price of $1.30.
Key investment considerations:
Given these factors, we believe Greystone Logistics Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.