What is LDI's Intrinsic value?

Loandepot Inc (LDI) Intrinsic Value Analysis

Executive Summary

As of June 4, 2025, Loandepot Inc's estimated intrinsic value ranges from $0.00 to $0.00 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside

Is Loandepot Inc (LDI) undervalued or overvalued?

With the current market price at $1.20, the stock appears to be significantly overvalued.

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 Loandepot Inc's intrinsic value, including:

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 1.14 3.1
Cost of equity 9.1% 22.2%
Cost of debt 5.2% 20.9%
Tax rate 9.5% 13.1%
Debt/Equity ratio 10.19 10.19
After-tax WACC 5.1% 18.5%

Valuation Methods

Key Financial Metrics

Metric Value
Market Capitalization $396M
Enterprise Value $4532M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 18.00
Current Dividend Yield 102.25%
Dividend Growth Rate (5Y) -73.31%
Debt-to-Equity Ratio 10.19

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
Weighted Average 100% $0.00

Investment Conclusion

Based on our comprehensive valuation analysis, Loandepot Inc's weighted average intrinsic value is $0.00, which is approximately 100.0% below the current market price of $1.20.

Key investment considerations:

  • Strong projected earnings growth (-14% to -11% margin)
  • Consistent cash flow generation

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