As of June 1, 2025, Neighbourly Pharmacy Inc's estimated intrinsic value ranges from $13.71 to $63.44 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $63.44 | +241.1% |
| Discounted Cash Flow (5Y) | $19.63 | +5.5% |
| Dividend Discount Model (Multi-Stage) | $19.25 | +3.5% |
| Earnings Power Value | $13.71 | -26.3% |
Is Neighbourly Pharmacy Inc (NBLY.TO) undervalued or overvalued?
With the current market price at $18.60, 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 Neighbourly Pharmacy 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 | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 0.38 | 0.7 |
| Cost of equity | 5.1% | 8.4% |
| Cost of debt | 6.6% | 20.2% |
| Tax rate | 4.4% | 6.3% |
| Debt/Equity ratio | 0.38 | 0.38 |
| After-tax WACC | 5.4% | 11.3% |
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 | $20 | $1,208M | 84.6% |
| 10-Year Growth | $63 | $3,176M | 74.3% |
| 5-Year EBITDA | $16 | $1,060M | 82.4% |
| 10-Year EBITDA | $49 | $2,515M | 67.6% |
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 | $69M |
| Discount Rate (WACC) | 11.3% - 5.4% |
| Enterprise Value | $610M - $1,274M |
| Net Debt | $327M |
| Equity Value | $284M - $948M |
| Outstanding Shares | 45M |
| Fair Value | $6 - $21 |
| Selected Fair Value | $13.71 |
| Metric | Value |
|---|---|
| Market Capitalization | $835M |
| Enterprise Value | $1162M |
| Trailing P/E | 0.00 |
| Forward P/E | 0.00 |
| Trailing EV/EBITDA | 10.35 |
| Current Dividend Yield | 111.67% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.38 |
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% | $19.03 |
| Discounted Cash Flow (5Y) | 29% | $4.91 |
| Dividend Discount Model (Multi-Stage) | 24% | $3.85 |
| Earnings Power Value | 12% | $1.37 |
| Weighted Average | 100% | $34.30 |
Based on our comprehensive valuation analysis, Neighbourly Pharmacy Inc's weighted average intrinsic value is $34.30, which is approximately 84.4% above the current market price of $18.60.
Key investment considerations:
Given these factors, we believe Neighbourly Pharmacy Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.