What is MDEX's Intrinsic value?

Madison Technologies Inc (MDEX) Intrinsic Value Analysis

Executive Summary

As of June 5, 2025, Madison Technologies Inc's estimated intrinsic value ranges from $0.01 to $0.01 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Discounted Cash Flow (10Y) $0.01 +5835.0%
Discounted Cash Flow (5Y) $0.01 +5341.0%

Is Madison Technologies Inc (MDEX) 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 Madison Technologies Inc's intrinsic value, including:

  1. Discounted Cash Flow (DCF): Values the company based on projected future cash flows

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 4.3 12.95
Cost of equity 23.6% 77.4%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 54.33 54.33
After-tax WACC 4.1% 5.0%

Valuation Methods

1. Discounted Cash Flow (DCF) Valuation

Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:

  • Forecast Period: 5-year DCF and 10-year DCF
  • Terminal Growth Rate: 0.0% (range: 3.0% - 5.0%)
  • Discount Rate: 4.5% (range: 0.0% - 9.3%)

Key Projections:

  • Revenue growth from $1 (FY12-2021) to $2 (FY12-2031)
  • Net profit margin expansion from -1108% to -809%
  • Capital expenditures maintained at approximately 396% of revenue
DCF Model Fair Value Enterprise Value % from Terminal Value
5-Year Growth $0 $34M 43.2%
10-Year Growth $0 $36M 16.8%
5-Year EBITDA $0 $61M 68.2%
10-Year EBITDA $0 $47M 36.9%

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $20M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 10.80
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 54.33

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
Discounted Cash Flow (10Y) 55% $0.00
Discounted Cash Flow (5Y) 45% $0.00
Weighted Average 100% $0.01

Investment Conclusion

Based on our comprehensive valuation analysis, Madison Technologies Inc's weighted average intrinsic value is $0.01, which is approximately 5610.5% above the current market price of $0.00.

Key investment considerations:

  • Strong projected earnings growth (-1108% to -809% margin)
  • Consistent cash flow generation

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