What is INND's Intrinsic value?

Innerscope Hearing Technologies Inc (INND) Intrinsic Value Analysis

Executive Summary

As of June 21, 2025, Innerscope Hearing Technologies Inc's estimated intrinsic value ranges from $0.22 to $38.04 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $38.04 +975244.6%
Discounted Cash Flow (5Y) $31.80 +815298.4%
Dividend Discount Model (Multi-Stage) $0.22 +5504.4%
Dividend Discount Model (Stable) $2.55 +65349.5%

Is Innerscope Hearing Technologies Inc (INND) undervalued or overvalued?

With the current market price at $0.00, 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 Innerscope Hearing Technologies Inc's intrinsic value, including:

  1. Discounted Cash Flow (DCF): Values the company based on projected future cash flows
  2. 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 5.47 35.39
Cost of equity 29.0% 203.1%
Cost of debt 4.0% 4.5%
Tax rate 26.2% 27.0%
Debt/Equity ratio 167.2 167.2
After-tax WACC 3.1% 4.5%

Valuation Methods

1. Discounted Cash Flow (DCF) Valuation

Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:

  • Forecast Period: 5-year DCF and 10-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 3.8% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $15 (FY12-2022) to $21 (FY12-2032)
  • Net profit margin expansion from 36% to 27%
  • Capital expenditures maintained at approximately 8% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $30 $128M 82.9%
10-Year Growth $36 $152M 73.0%
5-Year EBITDA $14 $59M 62.9%
10-Year EBITDA $19 $77M 46.3%

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: 116.0%
  • Long-term growth rate: 0.5%
  • Fair value: $0.22 (5504.4% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 203.1% (Low) to 29.0% (High)
  • Long-term growth rate: 0.0% (Low) to 1.0% (High)
  • Fair value range: $0 to $4
  • Selected fair value: $2.55 (65349.5% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $5M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 5.75
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 167.20

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
Discounted Cash Flow (10Y) 33% $11.41
Discounted Cash Flow (5Y) 28% $7.95
Dividend Discount Model (Multi-Stage) 22% $0.04
Dividend Discount Model (Stable) 17% $0.38
Weighted Average 100% $21.99

Investment Conclusion

Based on our comprehensive valuation analysis, Innerscope Hearing Technologies Inc's weighted average intrinsic value is $21.99, which is approximately 563668.1% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (36% to 27% margin)
  • Consistent cash flow generation

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