As of June 17, 2025, Kamada Ltd's estimated intrinsic value ranges from $1565.90 to $2632.67 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $2632.67 | +7.5% |
| Discounted Cash Flow (5Y) | $2430.47 | -0.7% |
| Dividend Discount Model (Multi-Stage) | $1565.90 | -36.0% |
| Dividend Discount Model (Stable) | $1832.41 | -25.1% |
| Earnings Power Value | $2574.36 | +5.2% |
Is Kamada Ltd (KMDA.TA) undervalued or overvalued?
With the current market price at $2448.00, 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 Kamada Ltd'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 | 1.6% | 2.1% |
| Equity market risk premium | 5.9% | 6.9% |
| Adjusted beta | 0.72 | 0.76 |
| Cost of equity | 5.9% | 7.9% |
| Cost of debt | 4.0% | 6.6% |
| Tax rate | 6.1% | 8.4% |
| Debt/Equity ratio | 0.02 | 0.02 |
| After-tax WACC | 5.9% | 7.9% |
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 | $743 | $275M | 73.7% |
| 10-Year Growth | $805 | $303M | 57.2% |
| 5-Year EBITDA | $989 | $388M | 81.4% |
| 10-Year EBITDA | $1,000 | $393M | 67.0% |
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 | $20M |
| Discount Rate (WACC) | 7.9% - 5.9% |
| Enterprise Value | $252M - $338M |
| Net Debt | $(65)M |
| Equity Value | $317M - $403M |
| Outstanding Shares | 0M |
| Fair Value | $693 - $882 |
| Selected Fair Value | $2574.36 |
| Metric | Value |
|---|---|
| Market Capitalization | $1123M |
| Enterprise Value | $894M |
| Trailing P/E | 18.70 |
| Forward P/E | 19.97 |
| Trailing EV/EBITDA | 17.40 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.02 |
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% | $789.80 |
| Discounted Cash Flow (5Y) | 25% | $607.62 |
| Dividend Discount Model (Multi-Stage) | 20% | $313.18 |
| Dividend Discount Model (Stable) | 15% | $274.86 |
| Earnings Power Value | 10% | $257.44 |
| Weighted Average | 100% | $2242.90 |
Based on our comprehensive valuation analysis, Kamada Ltd's weighted average intrinsic value is $2242.90, which is approximately 8.4% below the current market price of $2448.00.
Key investment considerations:
Given these factors, we believe Kamada Ltd is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.