As of June 17, 2025, Medistim ASA's estimated intrinsic value ranges from $97.61 to $156.00 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $131.81 | -31.9% |
| Discounted Cash Flow (5Y) | $119.21 | -38.4% |
| Dividend Discount Model (Multi-Stage) | $97.61 | -49.6% |
| Dividend Discount Model (Stable) | $124.28 | -35.8% |
| Earnings Power Value | $156.00 | -19.4% |
Is Medistim ASA (MEDI.OL) undervalued or overvalued?
With the current market price at $193.50, 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 Medistim ASA'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 | 3.3% | 3.8% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.57 | 0.7 |
| Cost of equity | 6.2% | 8.6% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 22.4% | 22.9% |
| Debt/Equity ratio | 0.01 | 0.01 |
| After-tax WACC | 6.2% | 8.5% |
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 | $119 | $2,029M | 78.1% |
| 10-Year Growth | $132 | $2,260M | 61.9% |
| 5-Year EBITDA | $136 | $2,332M | 80.9% |
| 10-Year EBITDA | $147 | $2,546M | 66.2% |
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 | $194M |
| Discount Rate (WACC) | 8.5% - 6.2% |
| Enterprise Value | $2,277M - $3,130M |
| Net Debt | $(157)M |
| Equity Value | $2,434M - $3,288M |
| Outstanding Shares | 18M |
| Fair Value | $133 - $179 |
| Selected Fair Value | $156.00 |
| Metric | Value |
|---|---|
| Market Capitalization | $3549M |
| Enterprise Value | $3392M |
| Trailing P/E | 28.88 |
| Forward P/E | 31.21 |
| Trailing EV/EBITDA | 13.70 |
| Current Dividend Yield | 230.21% |
| Dividend Growth Rate (5Y) | 13.28% |
| Debt-to-Equity Ratio | 0.01 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $39.54 |
| Discounted Cash Flow (5Y) | 25% | $29.80 |
| Dividend Discount Model (Multi-Stage) | 20% | $19.52 |
| Dividend Discount Model (Stable) | 15% | $18.64 |
| Earnings Power Value | 10% | $15.60 |
| Weighted Average | 100% | $123.11 |
Based on our comprehensive valuation analysis, Medistim ASA's weighted average intrinsic value is $123.11, which is approximately 36.4% below the current market price of $193.50.
Key investment considerations:
Given these factors, we believe Medistim ASA is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.