As of May 29, 2025, Ihuman Inc's estimated intrinsic value ranges from $2.83 to $10.58 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $7.09 | +199.8% |
| Discounted Cash Flow (5Y) | $6.17 | +161.0% |
| Dividend Discount Model (Multi-Stage) | $3.57 | +50.9% |
| Dividend Discount Model (Stable) | $2.83 | +19.5% |
| Earnings Power Value | $10.58 | +347.6% |
Is Ihuman Inc (IH) undervalued or overvalued?
With the current market price at $2.36, 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 Ihuman 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 | 0.77 | 0.89 |
| Cost of equity | 7.4% | 9.8% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 7.0% | 10.8% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.0% | 7.2% |
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 | $44 | $2,266M | 75.4% |
| 10-Year Growth | $51 | $2,603M | 58.6% |
| 5-Year EBITDA | $48 | $2,478M | 77.5% |
| 10-Year EBITDA | $54 | $2,759M | 60.9% |
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 | $254M |
| Discount Rate (WACC) | 7.2% - 6.0% |
| Enterprise Value | $3,554M - $4,218M |
| Net Debt | $0M |
| Equity Value | $3,554M - $4,218M |
| Outstanding Shares | 51M |
| Fair Value | $70 - $82 |
| Selected Fair Value | $10.58 |
| Metric | Value |
|---|---|
| Market Capitalization | $121M |
| Enterprise Value | $121M |
| Trailing P/E | 8.86 |
| Forward P/E | 6.49 |
| Trailing EV/EBITDA | 13.50 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.88 |
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% | $2.13 |
| Discounted Cash Flow (5Y) | 25% | $1.54 |
| Dividend Discount Model (Multi-Stage) | 20% | $0.71 |
| Dividend Discount Model (Stable) | 15% | $0.42 |
| Earnings Power Value | 10% | $1.06 |
| Weighted Average | 100% | $5.87 |
Based on our comprehensive valuation analysis, Ihuman Inc's weighted average intrinsic value is $5.87, which is approximately 148.1% above the current market price of $2.36.
Key investment considerations:
Given these factors, we believe Ihuman Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.