As of May 23, 2025, Hain Celestial Group Inc's estimated intrinsic value ranges from $3.67 to $16.67 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $16.67 | +768.1% |
| Discounted Cash Flow (5Y) | $11.93 | +521.4% |
| Dividend Discount Model (Multi-Stage) | $3.67 | +91.2% |
| Earnings Power Value | $11.87 | +518.0% |
Is Hain Celestial Group Inc (HAIN) undervalued or overvalued?
With the current market price at $1.92, 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 Hain Celestial 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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.31 | 0.5 |
| Cost of equity | 5.3% | 7.7% |
| Cost of debt | 4.3% | 9.1% |
| Tax rate | 15.4% | 19.8% |
| Debt/Equity ratio | 4.19 | 4.19 |
| After-tax WACC | 4.0% | 7.4% |
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 | $12 | $1,749M | 88.0% |
| 10-Year Growth | $17 | $2,177M | 75.3% |
| 5-Year EBITDA | $5 | $1,121M | 81.2% |
| 10-Year EBITDA | $9 | $1,485M | 63.8% |
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 | $90M |
| Discount Rate (WACC) | 7.4% - 4.0% |
| Enterprise Value | $1,224M - $2,263M |
| Net Debt | $672M |
| Equity Value | $552M - $1,590M |
| Outstanding Shares | 90M |
| Fair Value | $6 - $18 |
| Selected Fair Value | $11.87 |
| Metric | Value |
|---|---|
| Market Capitalization | $173M |
| Enterprise Value | $846M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 9.85 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 4.19 |
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% | $5.00 |
| Discounted Cash Flow (5Y) | 29% | $2.98 |
| Dividend Discount Model (Multi-Stage) | 24% | $0.73 |
| Earnings Power Value | 12% | $1.19 |
| Weighted Average | 100% | $11.65 |
Based on our comprehensive valuation analysis, Hain Celestial Group Inc's weighted average intrinsic value is $11.65, which is approximately 506.8% above the current market price of $1.92.
Key investment considerations:
Given these factors, we believe Hain Celestial Group Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.