What is IMII's Intrinsic value?

Inception Mining Inc (IMII) Intrinsic Value Analysis

Executive Summary

As of June 21, 2025, Inception Mining Inc's estimated intrinsic value ranges from $196.23 to $196.23 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Stable) $196.23 +27932.2%

Is Inception Mining Inc (IMII) undervalued or overvalued?

With the current market price at $0.70, the stock appears to be significantly undervalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Inception Mining Inc's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

Weighted Average Cost of Capital (WACC)

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 0.17 0.33
Cost of equity 4.6% 6.7%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 0.8 0.8
After-tax WACC 4.2% 5.4%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 5.7%
  • Long-term growth rate: 4.0%
  • Fair value: $-92.30 (-13285.9% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 6.7% (Low) to 4.6% (High)
  • Long-term growth rate: 3.0% (Low) to 5.0% (High)
  • Fair value range: $(32) to $425
  • Selected fair value: $196.23 (27932.2% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $1M
Enterprise Value $3M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 0.00
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.80

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Dividend Discount Model (Stable) 100% $29.43
Weighted Average 100% $196.23

Investment Conclusion

Based on our comprehensive valuation analysis, Inception Mining Inc's weighted average intrinsic value is $196.23, which is approximately 27932.2% above the current market price of $0.70.

Key investment considerations:

  • Strong projected earnings growth (-60% to -22% margin)
  • Consistent cash flow generation

Given these factors, we believe Inception Mining Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.