As of May 27, 2025, InfuSystem Holdings Inc's estimated intrinsic value ranges from $0.45 to $16.22 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $16.22 | +199.7% |
| Discounted Cash Flow (5Y) | $10.53 | +94.6% |
| Dividend Discount Model (Multi-Stage) | $9.35 | +72.8% |
| Dividend Discount Model (Stable) | $2.97 | -45.1% |
| Earnings Power Value | $0.45 | -91.6% |
Is InfuSystem Holdings Inc (INFU) undervalued or overvalued?
With the current market price at $5.41, 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 InfuSystem Holdings 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 | 0.88 | 1.15 |
| Cost of equity | 7.9% | 11.3% |
| Cost of debt | 4.8% | 5.1% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 0.21 | 0.21 |
| After-tax WACC | 7.2% | 10.0% |
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 | $11 | $249M | 85.0% |
| 10-Year Growth | $16 | $368M | 71.9% |
| 5-Year EBITDA | $15 | $342M | 89.1% |
| 10-Year EBITDA | $18 | $410M | 74.8% |
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 | $3M |
| Discount Rate (WACC) | 10.0% - 7.2% |
| Enterprise Value | $31M - $43M |
| Net Debt | $27M |
| Equity Value | $3M - $16M |
| Outstanding Shares | 21M |
| Fair Value | $0 - $1 |
| Selected Fair Value | $0.45 |
| Metric | Value |
|---|---|
| Market Capitalization | $114M |
| Enterprise Value | $141M |
| Trailing P/E | 35.65 |
| Forward P/E | 17.13 |
| Trailing EV/EBITDA | 9.60 |
| Current Dividend Yield | 62.96% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.21 |
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% | $4.86 |
| Discounted Cash Flow (5Y) | 25% | $2.63 |
| Dividend Discount Model (Multi-Stage) | 20% | $1.87 |
| Dividend Discount Model (Stable) | 15% | $0.45 |
| Earnings Power Value | 10% | $0.05 |
| Weighted Average | 100% | $9.86 |
Based on our comprehensive valuation analysis, InfuSystem Holdings Inc's weighted average intrinsic value is $9.86, which is approximately 82.2% above the current market price of $5.41.
Key investment considerations:
Given these factors, we believe InfuSystem Holdings Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.