What is MARKA.IS's Intrinsic value?

Marka Yatirim Holding AS (MARKA.IS) Intrinsic Value Analysis

Executive Summary

As of June 6, 2025, Marka Yatirim Holding AS's estimated intrinsic value ranges from $0.10 to $0.10 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Multi-Stage) $0.10 -97.3%

Is Marka Yatirim Holding AS (MARKA.IS) undervalued or overvalued?

With the current market price at $3.67, 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 Marka Yatirim Holding AS's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

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 21.4% 21.9%
Equity market risk premium 10.2% 11.2%
Adjusted beta 0.54 0.61
Cost of equity 26.8% 29.2%
Cost of debt 5.0% 5.0%
Tax rate 11.1% 13.7%
Debt/Equity ratio 0 0
After-tax WACC 26.8% 29.2%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 0.0%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 28.0%
  • Long-term growth rate: 4.0%
  • Fair value: $0.10 (-97.3% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 29.2% (Low) to 26.8% (High)
  • Long-term growth rate: 3.0% (Low) to 5.0% (High)
  • Fair value range: $(0) to $(0)
  • Selected fair value: $-0.04 (-101.1% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $77M
Enterprise Value $75M
Trailing P/E 5818.23
Forward P/E 81.93
Trailing EV/EBITDA 0.00
Current Dividend Yield 0.00%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.00

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
Dividend Discount Model (Multi-Stage) 100% $0.02
Weighted Average 100% $0.10

Investment Conclusion

Based on our comprehensive valuation analysis, Marka Yatirim Holding AS's weighted average intrinsic value is $0.10, which is approximately 97.3% below the current market price of $3.67.

Key investment considerations:

  • Conservative capital structure (Debt/Equity of 0.00)

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