As of May 27, 2025, Internet Gold Golden Lines Ltd's estimated intrinsic value ranges from $46.91 to $9696.70 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2506.75 | +127146.3% |
| Discounted Cash Flow (5Y) | $2390.31 | +121235.4% |
| Dividend Discount Model (Multi-Stage) | $46.91 | +2281.2% |
| Earnings Power Value | $9696.70 | +492118.1% |
Is Internet Gold Golden Lines Ltd (IGLDF) undervalued or overvalued?
With the current market price at $1.97, 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 Internet Gold Golden Lines Ltd'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 | 3.06 | 9.61 |
| Cost of equity | 17.9% | 58.7% |
| Cost of debt | 4.0% | 4.8% |
| Tax rate | 30.1% | 40.4% |
| Debt/Equity ratio | 46.13 | 46.13 |
| After-tax WACC | 3.1% | 4.0% |
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 | $8,605 | $30,314M | 88.3% |
| 10-Year Growth | $9,025 | $31,240M | 76.2% |
| 5-Year EBITDA | $2,190 | $16,137M | 78.1% |
| 10-Year EBITDA | $3,593 | $19,237M | 61.3% |
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 | $3,111M |
| Discount Rate (WACC) | 4.0% - 3.1% |
| Enterprise Value | $77,117M - $99,773M |
| Net Debt | $11,296M |
| Equity Value | $65,821M - $88,477M |
| Outstanding Shares | 2M |
| Fair Value | $29,783 - $40,035 |
| Selected Fair Value | $9696.70 |
| Metric | Value |
|---|---|
| Market Capitalization | $4M |
| Enterprise Value | $3142M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.05 |
| Trailing EV/EBITDA | 5.70 |
| Current Dividend Yield | 62.96% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 46.13 |
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% | $752.03 |
| Discounted Cash Flow (5Y) | 29% | $597.58 |
| Dividend Discount Model (Multi-Stage) | 24% | $9.38 |
| Earnings Power Value | 12% | $969.67 |
| Weighted Average | 100% | $2739.59 |
Based on our comprehensive valuation analysis, Internet Gold Golden Lines Ltd's weighted average intrinsic value is $2739.59, which is approximately 138965.6% above the current market price of $1.97.
Key investment considerations:
Given these factors, we believe Internet Gold Golden Lines Ltd is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.