As of June 18, 2025, IFirma SA's estimated intrinsic value ranges from $17.09 to $40.57 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $40.57 | +55.5% |
| Discounted Cash Flow (5Y) | $32.70 | +25.3% |
| Dividend Discount Model (Multi-Stage) | $22.18 | -15.0% |
| Dividend Discount Model (Stable) | $17.09 | -34.5% |
| Earnings Power Value | $18.61 | -28.7% |
Is IFirma SA (IFI.WA) undervalued or overvalued?
With the current market price at $26.10, 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 IFirma SA'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 | 5.5% | 6.0% |
| Equity market risk premium | 6.3% | 7.3% |
| Adjusted beta | 0.38 | 0.48 |
| Cost of equity | 7.9% | 10.0% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 20.0% | 20.6% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.0% | 7.0% |
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 | $33 | $207M | 81.4% |
| 10-Year Growth | $41 | $257M | 68.4% |
| 5-Year EBITDA | $12 | $76M | 49.6% |
| 10-Year EBITDA | $19 | $120M | 32.1% |
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 | $8M |
| Discount Rate (WACC) | 7.0% - 6.0% |
| Enterprise Value | $107M - $126M |
| Net Debt | $(3)M |
| Equity Value | $110M - $129M |
| Outstanding Shares | 6M |
| Fair Value | $17 - $20 |
| Selected Fair Value | $18.61 |
| Metric | Value |
|---|---|
| Market Capitalization | $167M |
| Enterprise Value | $164M |
| Trailing P/E | 19.89 |
| Forward P/E | 18.99 |
| Trailing EV/EBITDA | 3.40 |
| Current Dividend Yield | 393.88% |
| Dividend Growth Rate (5Y) | 59.29% |
| Debt-to-Equity Ratio | 1.05 |
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% | $12.17 |
| Discounted Cash Flow (5Y) | 25% | $8.18 |
| Dividend Discount Model (Multi-Stage) | 20% | $4.44 |
| Dividend Discount Model (Stable) | 15% | $2.56 |
| Earnings Power Value | 10% | $1.86 |
| Weighted Average | 100% | $29.21 |
Based on our comprehensive valuation analysis, IFirma SA's weighted average intrinsic value is $29.21, which is approximately 11.9% above the current market price of $26.10.
Key investment considerations:
Given these factors, we believe IFirma SA is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.