As of May 29, 2025, Minerals Technologies Inc's estimated intrinsic value ranges from $56.29 to $102.11 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $102.11 | +75.0% |
| Discounted Cash Flow (5Y) | $93.44 | +60.1% |
| Dividend Discount Model (Multi-Stage) | $56.29 | -3.5% |
| Dividend Discount Model (Stable) | $58.88 | +0.9% |
| Earnings Power Value | $57.66 | -1.2% |
Is Minerals Technologies Inc (MTX) undervalued or overvalued?
With the current market price at $58.35, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Minerals 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 | 1.06 | 1.16 |
| Cost of equity | 8.8% | 11.4% |
| Cost of debt | 5.3% | 5.4% |
| Tax rate | 19.5% | 21.1% |
| Debt/Equity ratio | 0.53 | 0.53 |
| After-tax WACC | 7.2% | 8.9% |
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 | $93 | $3,603M | 74.5% |
| 10-Year Growth | $102 | $3,878M | 56.1% |
| 5-Year EBITDA | $89 | $3,449M | 73.4% |
| 10-Year EBITDA | $101 | $3,844M | 55.7% |
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 | $197M |
| Discount Rate (WACC) | 8.9% - 7.2% |
| Enterprise Value | $2,207M - $2,728M |
| Net Debt | $638M |
| Equity Value | $1,569M - $2,090M |
| Outstanding Shares | 32M |
| Fair Value | $49 - $66 |
| Selected Fair Value | $57.66 |
| Metric | Value |
|---|---|
| Market Capitalization | $1851M |
| Enterprise Value | $2490M |
| Trailing P/E | 11.08 |
| Forward P/E | 9.82 |
| Trailing EV/EBITDA | 7.80 |
| Current Dividend Yield | 71.55% |
| Dividend Growth Rate (5Y) | 18.04% |
| Debt-to-Equity Ratio | 0.53 |
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% | $30.63 |
| Discounted Cash Flow (5Y) | 25% | $23.36 |
| Dividend Discount Model (Multi-Stage) | 20% | $11.26 |
| Dividend Discount Model (Stable) | 15% | $8.83 |
| Earnings Power Value | 10% | $5.77 |
| Weighted Average | 100% | $79.85 |
Based on our comprehensive valuation analysis, Minerals Technologies Inc's weighted average intrinsic value is $79.85, which is approximately 36.8% above the current market price of $58.35.
Key investment considerations:
Given these factors, we believe Minerals Technologies Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.