As of August 27, 2025, Jadestone Energy Inc's estimated intrinsic value ranges from $21.68 to $97.23 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $27.22 | +37.5% |
| Dividend Discount Model (Multi-Stage) | $21.68 | +9.5% |
| Earnings Power Value | $97.23 | +391.0% |
Is Jadestone Energy Inc (JSE.L) undervalued or overvalued?
With the current market price at $19.80, 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 Jadestone Energy 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 | 4.0% | 4.5% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.56 | 0.74 |
| Cost of equity | 7.3% | 10.2% |
| Cost of debt | 7.0% | 38.3% |
| Tax rate | 8.8% | 40.9% |
| Debt/Equity ratio | 1.51 | 1.51 |
| After-tax WACC | 6.8% | 17.7% |
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 | $(1,234) | $23M | 144.2% |
| 10-Year Growth | $37 | $322M | 72.8% |
| 5-Year EBITDA | $1 | $129M | 107.9% |
| 10-Year EBITDA | $23 | $248M | 64.6% |
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 | $81M |
| Discount Rate (WACC) | 17.7% - 6.8% |
| Enterprise Value | $461M - $1,205M |
| Net Debt | $123M |
| Equity Value | $338M - $1,082M |
| Outstanding Shares | 5M |
| Fair Value | $63 - $200 |
| Selected Fair Value | $97.23 |
| Metric | Value |
|---|---|
| Market Capitalization | $107M |
| Enterprise Value | $198M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 2.00 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 1.51 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 50% | $8.17 |
| Dividend Discount Model (Multi-Stage) | 33% | $4.34 |
| Earnings Power Value | 17% | $9.72 |
| Weighted Average | 100% | $37.04 |
Based on our comprehensive valuation analysis, Jadestone Energy Inc's intrinsic value is $37.04, which is approximately 87.1% above the current market price of $19.80.
Key investment considerations:
Given these factors, we believe Jadestone Energy Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.