As of May 23, 2025, GP Strategies Corp's estimated intrinsic value ranges from $9.30 to $34.35 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $34.35 | +64.7% |
| Discounted Cash Flow (5Y) | $26.47 | +26.9% |
| Dividend Discount Model (Multi-Stage) | $21.30 | +2.2% |
| Dividend Discount Model (Stable) | $12.68 | -39.2% |
| Earnings Power Value | $9.30 | -55.4% |
Is GP Strategies Corp (GPX) undervalued or overvalued?
With the current market price at $20.85, the stock appears to be moderately 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 GP Strategies Corp'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 | 4.2% | 5.2% |
| Adjusted beta | 1.01 | 1.28 |
| Cost of equity | 7.4% | 10.9% |
| Cost of debt | 4.0% | 4.5% |
| Tax rate | 26.6% | 32.4% |
| Debt/Equity ratio | 0.03 | 0.03 |
| After-tax WACC | 7.3% | 10.6% |
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 | $26 | $458M | 79.6% |
| 10-Year Growth | $34 | $596M | 63.4% |
| 5-Year EBITDA | $22 | $373M | 74.9% |
| 10-Year EBITDA | $28 | $482M | 54.7% |
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 | $14M |
| Discount Rate (WACC) | 10.6% - 7.3% |
| Enterprise Value | $128M - $186M |
| Net Debt | $(6)M |
| Equity Value | $134M - $192M |
| Outstanding Shares | 18M |
| Fair Value | $8 - $11 |
| Selected Fair Value | $9.30 |
| Metric | Value |
|---|---|
| Market Capitalization | $366M |
| Enterprise Value | $359M |
| Trailing P/E | 27.98 |
| Forward P/E | 30.84 |
| Trailing EV/EBITDA | 7.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.03 |
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% | $10.30 |
| Discounted Cash Flow (5Y) | 25% | $6.62 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.26 |
| Dividend Discount Model (Stable) | 15% | $1.90 |
| Earnings Power Value | 10% | $0.93 |
| Weighted Average | 100% | $24.01 |
Based on our comprehensive valuation analysis, GP Strategies Corp's weighted average intrinsic value is $24.01, which is approximately 15.2% above the current market price of $20.85.
Key investment considerations:
Given these factors, we believe GP Strategies Corp is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.