As of May 25, 2025, International Petroleum Corp's estimated intrinsic value ranges from $70.87 to $176.07 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $148.68 | +13.1% |
| Discounted Cash Flow (5Y) | $176.07 | +33.9% |
| Dividend Discount Model (Multi-Stage) | $70.87 | -46.1% |
| Dividend Discount Model (Stable) | $76.87 | -41.5% |
| Earnings Power Value | $135.87 | +3.3% |
Is International Petroleum Corp (IPCO.ST) undervalued or overvalued?
With the current market price at $131.50, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate International Petroleum Corp'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 | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.01 | 1.06 |
| Cost of equity | 7.7% | 10.0% |
| Cost of debt | 4.0% | 7.1% |
| Tax rate | 24.4% | 25.7% |
| Debt/Equity ratio | 0.28 | 0.28 |
| After-tax WACC | 6.7% | 8.9% |
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 | $18 | $2,436M | 71.2% |
| 10-Year Growth | $16 | $2,105M | 47.8% |
| 5-Year EBITDA | $8 | $1,219M | 42.5% |
| 10-Year EBITDA | $10 | $1,473M | 25.4% |
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 | $149M |
| Discount Rate (WACC) | 8.9% - 6.7% |
| Enterprise Value | $1,666M - $2,235M |
| Net Debt | $308M |
| Equity Value | $1,357M - $1,926M |
| Outstanding Shares | 115M |
| Fair Value | $12 - $17 |
| Selected Fair Value | $135.87 |
| Metric | Value |
|---|---|
| Market Capitalization | $15146M |
| Enterprise Value | $18087M |
| Trailing P/E | 18.75 |
| Forward P/E | 17.98 |
| Trailing EV/EBITDA | 1.85 |
| Current Dividend Yield | 62.96% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.28 |
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% | $44.61 |
| Discounted Cash Flow (5Y) | 25% | $44.02 |
| Dividend Discount Model (Multi-Stage) | 20% | $14.17 |
| Dividend Discount Model (Stable) | 15% | $11.53 |
| Earnings Power Value | 10% | $13.59 |
| Weighted Average | 100% | $127.91 |
Based on our comprehensive valuation analysis, International Petroleum Corp's weighted average intrinsic value is $127.91, which is approximately 2.7% below the current market price of $131.50.
Key investment considerations:
Given these factors, we believe International Petroleum Corp is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.