As of June 8, 2025, Maxar Technologies Inc's estimated intrinsic value ranges from $9.03 to $67.34 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $67.34 | +27.1% |
| Discounted Cash Flow (5Y) | $35.77 | -32.5% |
| Dividend Discount Model (Multi-Stage) | $9.03 | -83.0% |
| Earnings Power Value | $30.32 | -42.8% |
Is Maxar Technologies Inc (MAXR) undervalued or overvalued?
With the current market price at $52.99, the stock appears to be significantly overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Maxar Technologies 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 | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.82 | 1.07 |
| Cost of equity | 7.7% | 10.9% |
| Cost of debt | 6.4% | 23.9% |
| Tax rate | 6.0% | 16.6% |
| Debt/Equity ratio | 0.57 | 0.57 |
| After-tax WACC | 7.0% | 14.2% |
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) | $1,459M | 78.7% |
| 10-Year Growth | $0 | $2,148M | 62.6% |
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 | $409M |
| Discount Rate (WACC) | 14.2% - 7.0% |
| Enterprise Value | $2,889M - $5,801M |
| Net Debt | $2,142M |
| Equity Value | $747M - $3,659M |
| Outstanding Shares | 73M |
| Fair Value | $10 - $50 |
| Selected Fair Value | $30.32 |
| Metric | Value |
|---|---|
| Market Capitalization | $3850M |
| Enterprise Value | $5992M |
| Trailing P/E | 0.00 |
| Forward P/E | -25.70 |
| Trailing EV/EBITDA | 20.95 |
| Current Dividend Yield | 7.59% |
| Dividend Growth Rate (5Y) | -45.99% |
| Debt-to-Equity Ratio | 0.57 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $20.20 |
| Discounted Cash Flow (5Y) | 29% | $8.94 |
| Dividend Discount Model (Multi-Stage) | 24% | $1.81 |
| Earnings Power Value | 12% | $3.03 |
| Weighted Average | 100% | $39.98 |
Based on our comprehensive valuation analysis, Maxar Technologies Inc's weighted average intrinsic value is $39.98, which is approximately 24.6% below the current market price of $52.99.
Key investment considerations:
Given these factors, we believe Maxar Technologies Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.