What is LIG.LS's Intrinsic value?

Lisgrafica Impressao e Artes Graficas SA (LIG.LS) Intrinsic Value Analysis

Executive Summary

As of June 12, 2025, Lisgrafica Impressao e Artes Graficas SA's estimated intrinsic value ranges from $0.13 to $0.13 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Earnings Power Value $0.13 +8282.7%

Is Lisgrafica Impressao e Artes Graficas SA (LIG.LS) 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 Lisgrafica Impressao e Artes Graficas SA's intrinsic value, including:

  1. Earnings Power Value (EPV): Values the company based on its current earnings power, assuming no growth

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 2.9% 3.4%
Equity market risk premium 6.9% 7.8%
Adjusted beta 0.93 1.13
Cost of equity 9.2% 12.7%
Cost of debt 5.0% 5.0%
Tax rate 9.3% 10.8%
Debt/Equity ratio 41.03 41.03
After-tax WACC 4.6% 4.7%

Valuation Methods

3. Earnings Power Value (EPV)

EPV assesses a company's value based on its current normalized earnings power, assuming no growth.

EPV Component Value
Normalized Earnings $2M
Discount Rate (WACC) 4.7% - 4.6%
Enterprise Value $35M - $35M
Net Debt $12M
Equity Value $23M - $24M
Outstanding Shares 187M
Fair Value $0 - $0
Selected Fair Value $0.13

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $12M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 4.15
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 41.03

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
Earnings Power Value 100% $0.01
Weighted Average 100% $0.13

Investment Conclusion

Based on our comprehensive valuation analysis, Lisgrafica Impressao e Artes Graficas SA's weighted average intrinsic value is $0.13, which is approximately 8282.7% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (-19% to -8% margin)
  • Consistent cash flow generation

Given these factors, we believe Lisgrafica Impressao e Artes Graficas SA is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.